United States Secretary of the Treasury, Janet Yellenthinks about it financial stability represents the “public good” Great progress has been made since the 2008 financial crisis, but recent events remind us that we must complete unfinished business, and if deregulation has gone too far.
“These events remind us that we urgently need to complete unfinished business: complete post-crisis reformstake into account whether deregulation has gone too far “Repair the cracks in the regulatory framework that recent shocks have exposed,” Yellen told the National Association for Business Economics (NABE).
“We have come a long way in the last 15 years. But recent events clearly show that we’re not doneYellen acknowledged this, stating that since assuming the Treasury Department leadership, restoring and strengthening financial stability has been a priority.
In this sense, the former head of the United States Federal Reserve underlined: none of the tests the financial system is subjected to In recent years, including the Covid-19 pandemic or the recent bank interventions at the beginning of this March, triggered a financial collapse similar to the one recorded between 2007 and 2008.
According to him, this is largely due to Reforms implemented after the global financial crisishowever, the Government had to intervene to ease the pressure on certain parts of the financial system.
“This means more work needs to be done (…) Financial stability is in the public interestHe argued, recalling that the costs of a systemic financial failure are externalized to society at large.