资源描述：
《Complexity Innovation and the Regulation of Modern Financial Markets Awrey18Oct11.pdf》由会员上传分享，免费在线阅读，更多相关内容在学术论文-天天文库。
1、LEGALRESEARCHPAPERSERIESPaperNo49/2011September2011Complexity,InnovationandtheRegulationofModernFinancialMarketsDANAWREYThefulltextofthispapercanbedownloadedwithoutchargefromtheSocialScienceResearchNetworkelectroniclibraryat:Anindextotheworkingpaper
2、sintheUniversityofOxfordLegalResearchPaperSeriesislocatedat:Complexity,InnovationandtheRegulationofModernFinancialMarkets∗DanAwreyDRAFT:August25,2011∗UniversityLecturerinLawandFinanceandFellow,LinacreCollege,OxfordUniversity.Theaut
3、horwouldliketothankJohnArmour,BlanaidClarke,MerrittFox,AnnaGelpern,LawrenceGlosten,JeffGolden,SeanGriffith,ChristianJohnson,KatharinaPistor,ColinScottandKristinvanZwietenfortheirextremelyhelpfulcommentsandtotheorganizersandparticipantsofworkshopshostedbyFordhamUniversityandUniversit
4、yCollegeDublinfortheopportunitytopresentpreviousdraftsofthispaper.TheauthorwouldalsoliketoacknowledgethegeneroussupportofboththeInstituteforNewEconomicThinkingandtheColumbiaUniversityGlobalFinanceandLawInitiative.Electroniccopyavailableat:http://ssrn.com/abstract=1916649ABSTRACTThei
5、ntellectualoriginsoftheglobalfinancialcrisis(GFC)canbetracedbacktoblindspotsemanatingfromwithinconventionalfinancialtheory.Theseblindspotsaredistortedreflectionsoftheperfectmarketassumptionsunderpinningthecanonicaltheoriesoffinancialeconomics:modernportfoliotheory;theModiglianiandMi
6、llercapitalstructureirrelevancyprinciple;thecapitalassetpricingmodeland,perhapsmostimportantly,theefficientmarkethypothesis.InthedecadesleadinguptotheGFC,theseassumptionsweretransformedfromempirically(con)testablepropositionsintothecentralarticlesoffaithoftheideologyofmodernfinance:
7、thefoundationsofawidelyheldbeliefintheself-correctingnatureofmarketsandtheirconsequentoptimalityasmechanismsfortheallocationofsociety’sresources.Thisideology,inturn,exertedaprofoundinfluenceonhowweregulatefinancialmarketsandinstitutions.TheGFChasexposedthefollyofthismarketfundamenta
8、lismasadriverofpubl
