The maintenance of financial stability is a key objective of monetary policy, but the record of regulators in achieving this has been lamentable in recent years. This failure has been matched by an equivalent inability to establish an appropriate theoretical basis for financial regulation. In this book, the authors demonstrate how to enhance the theory, modeling and practice of such regulation. The main determinant of financial instability is the default of financial institutions. The authors highlight the importance of the appropriate incorporation of default into macro-financial models and its interaction with liquidity. Besides covering the historical development and current stance of financial regulation, the book includes a number of policy-oriented chapters revealing how the authors' modeling approach can improve the process. This authoritative book will serve as a basis for future work on financial stability management for both academics and policy makers and provide guidance on how to undertake crisis prevention and resolution.

Gordon Brown was a past-master at sneaking in new taxes by stealth, but his efforts as Chancellor and then Prime Minister were merely the latest in a long line of party leaders desperate to extract more money from reluctant taxpayers. This book challenges the need for government to resort to such underhand practices which undermine the economy, killing the goose which lays the golden eggs, and the integrity of the political process. The author argues that not only does taxation flout the principle of private property, but it 'is a primal cause of both inflation and unemployment. Regardless of this, the freely elected governments of contemporary trading economies - with the acquiescence of their electorates - persist in raising the major part, if not all, of their revenues by means of taxation. The immediate cause of such action by governments...is ignorance of any acceptable alternative method of raising sufficient public revenue.' Burgess shows how the development of Keynes' general theory of employment 'leads to the conclusion that an open trading economy is likely to be most competitive, and therefore most prosperous, only when taxation is abolished' - but government must be funded. How can this be done without taxation? To provide an answer he refines Alfred Marshall's distinction between the public and private value of property to reveal an alternative, peculiarly public source of revenue. Unlike a tax, defined by a former Labour Chancellor, Hugh Dalton, as 'a compulsory contribution imposed by a public authority, irrespective of the exact amount of service rendered to the taxpayer in return', the 'public value' identified by Marshall would deliver an exact equivalence between the benefits enjoyed and the amount paid. On the basis of this widely accepted definition, therefore, it is not a tax but the price for services rendered like any other transaction - the price fixed by the market. The author shows how reform may be introduced with a minimum of disruption, so that politicians with an eye to re-election can achieve measurable results during the lifetime of a parliament.

"The richness, clarity and nuances of the structure and methodology followed by the contributors make the book a very valuable tool for students... seeking to obtain a general understanding of the market and how it is regulated." - Ligia Catherine Arias Barrera, Banking & Finance Law Review The fully updated edition of this user-friendly textbook continues to systematise the European law governing capital markets and examines the underlying concepts from a broadly interdisciplinary perspective. The 3rd edition deals with 3 central developments: the project of the capital markets union; sustainable finance; and the further digitalisation of financial instruments and securities markets. The 1st chapter deals with the foundations of capital markets law in Europe, the 2nd explains the basics, and the 3rd examines the regime on market abuse. Chapter 4 explores the disclosure system and chapter 5 short-selling and high-frequency trading. The role of intermediaries, such as financial analysts, rating agencies, and proxy advisers, is described in chapter 6. Chapter 7 explains compliance and corporate governance in investment firms and chapter 8 illustrates the regulation of benchmarks. Finally, chapter 9 deals with public takeovers. Throughout the book emphasis is placed on legal practice, and frequent reference is made to the key decisions of supervisory authorities and courts. This is essential reading for students involved in the study of capital markets law and financial law.

Law and the Financial System: Securitization and Asset Backed Securities provides students and practitioners with a comprehensive source of materials and references for understanding the process and issues that surround the conversion of illiquid financial assets into tradable securities. The book begins with an overview of the financial system and the place of securitization in the system. The book focuses on the process and law of securitization and is derived largely from Tamar Frankel's treaties, Securitization (2nd ed. 2005). The book concludes with a global view of securitization and an assessment of the impact and future of securitizing financial assets. The legal text is enhanced with case studies and simulation exercises that bring context and practical application to the subject. Study questions covering law, business and public policy provide students with an opportunity to discuss and debate areas where answers are complex and often indeterminate. Simulation exercises enable students to test their own ideas with their peers using real world examples. The book can be used as a stand alone course on securitization or as a supplementary text for courses on financial regulation. Practitioners will find the book a useful desk reference. This is the second book co-authored by Mark Fagan and Tamar Frankel. The first was "Trust and Honesty in the Real World" (2007). About the authors: Tamar Frankel authored Fiduciary Law (2008), Trust and Honesty, America's Business Culture at a Crossroad (2006), Securitization (2d.ed 2006), The Regulation of Money Managers (2d ed. 2001 with Ann Taylor Schwing), and more than 70 articles. A long-time member of the Boston University School of Law faculty, Professor Frankel was a visiting scholar at the Securities and Exchange Commission and at the Brookings Institution. A native of Israel, Professor Frankel served in the Israeli Air Force, was an assistant attorney general for Israel's Ministry of Justice and the legal advisor of the State of Israel Bonds Organization in Europe. She practiced in Israel, Boston and Washington, D.C. and is a member of the Massachusetts Bar, the American Law Institute, and The American Bar Foundation. Mr. Fagan's research centers on the role of regulation in competitive markets. He has written about the impact of deregulation in the financial, transportation and electricity sectors. He teaches courses and guest lectures at Boston University School of Law and at Harvard Kennedy School. He has been a frequent seminar speaker at Harvard Kennedy School's Mossavar-Rahmani Center for Business and Government; recent topics include the subprime disaster, securitization, Ponzi schemes, and financial bubbles. Mark Fagan is a founding partner of Norbridge, Inc. a general management consulting firm. He works with clients in the transportation, telecommunications and utility industries as they grapple with increasing shareholder value in a deregulated world. Prior to Norbridge, he was a Vice President of Mercer Management Consulting.

What is the future of banking and money? The road passes through data and digitalization at all levels of activity, from personal banking through publicly and privately issued digital currencies. But who is winning and losing ground in the banking sector? Do we really need central bank digital currencies and how should they and private digital currencies be designed and regulated to yield the maximum benefits while reducing the obvious dangers? How should we regulate the new digital technologies? This book brings you the answers of senior public sector offi cials, industry leaders and leading academics. It is the tenth title in the Institute for Law and Finance's series on the future of the financial sector.

The Research Handbook on Central Banking focuses on global central banks as institutions and not abstractions, providing historical and practical detail about how central banks work and the challenges they face. This Research Handbook offers the most interdisciplinary treatment of global central banks published to date by addressing key questions regarding where they come from, how they have changed, and the challenges they face during uncertain times. Divided into two parts, the Research Handbook firstly takes readers on a global tour, covering central banks in the US, Latin America, Europe, Eastern Europe, Japan, China, Africa, and more. In the second part, authors delve into themes of broad application, including transparency, independence, unconventional monetary policy, payment systems, and crisis response. The interdisciplinary mix of contributors include some of the most prominent names in central banking as well as a new generation of scholars who are shaping the conversation about central banks and their role in global politics, economics, and society at large. Interdisciplinary and innovative, this Research Handbook will prove essential reading for scholars focusing on central banks, financial regulation, global governance, and related areas, as well as for central bankers and employees at central banks. Contributors include: C. Adam, K. Alexander, A. Berg, R. Bhala, D. Bholat, C. Borio, F. Capie, P. Conti-Brown, R. Darbyshire, F. Decker, B. Geva, C. Goodhart, A.G. Haldane, L.I. Jacome, H. James, J. Johnson, R.B. Kahn, H. Kanda, C. Kaufmann, R.M. Lastra, X. Liu, S. McCracken, E.E. Meade, S.T. Omarova, R. Portillo, M. Raskin, A.L. Riso, R. Smits, P. Tucker, F. Unsal, R.H. Weber, G. Wood, T. Yamanaka, D. Yermack, A. Zabai, Z. Zhou, C. Zilioli

The achievement of financial stability is one of the most pressing issues today. This timely and innovative book provides an analytical framework to assess financial (in)stability as an equilibrium phenomenon compatible with the orderly functioning of a modern market economy. The authors expertly show how good regulatory policy can be implemented and that its effects on the real as well as the nominal side of the economy can be properly analyzed. The core of their approach is to take realistic account of the interaction between endogenous default, agent heterogeneity and money and liquidity, and suggest how a quantifiable metric of financial fragility could be developed. This insightful book will serve as a basis for future work on financial stability management for both academics and policy makers and provide guidance on how to undertake crisis prevention and resolution.