Reforming finance for a new era economy
Article
'What I see as the problem both in the UK and in other advanced countries is that the financial sector has gotten used to profit rates that are way above those experienced by the production economy. Worse still, the financiers really think that it is their genius that got them all this excess wealth, rather than the special bubble conditions that made it easy.
'During "golden ages", finance supports both production and consumption across the board, and shares in the profits of a flourishing and rejuvenated real economy. The whole problem of adequate regulation has to do, then, not with restraining finance but with steering it away from the toxic behaviours of recent times and opening sufficiently profitable avenues in the direction of the real economy.'
This speech was delivered by Carlota Perez, visiting scholar at the University of Cambridge and a member of IPPR's New Era Economics panel, at a seminar event 'Reforming finance for a new era economy', hosted by IPPR on 27 October 2011.
Related items
Taken to heart: Inequalities in heart disease in Scotland
More than 7.6 million people across the UK live with cardiovascular disease (CVD), around twice as many as live with Alzheimer’s disease and cancer combined.Skills passports: An essential part of a fair transition
This month, government will publish its Clean Energy Workforce Strategy. This plan covers two aims. First, filling the growing demand for skills in clean energy industries is essential to keep on track to reach the government’s clean power…Fixing the leak: How to end the £22 billion annual taxpayer losses at the Bank of England
The Bank of England increased its interest rates over recent years, aimed at reducing inflation. But this has also had an unintended effect on the Bank of England’s massive government bond buying – ‘quantitative easing’ – programme.