This book presents a novel approach to the reform of the world's financial system, starting with the basic question, what is a financial system for? It shows that the existing system has become far more complicated than it needs to be to discharge its functions - and dangerously unstable into the bargain. It proposes some drastic remedies. "The Future of Finance: The LSE Report" is the work of a group of leading academics, financiers, journalists and officials from the UK's Financial Services Authority, the Bank of England and the Treasury. They met twelve times, for what many of those present described as the best and most searching discussions they had ever participated in. The first author is Adair Turner, chair of the Working Party of the G20 Financial Stability Board reporting to the G20 Summit in November 2010; the others are major international players in policymaking or public debate. Reviews "The UK has been at the epicentre of both the financial crisis and the ongoing debate over the future of finance. Here the leading figures in that debate tell us how to think about the process of financial reform. Their thoughts deserve the widest possible audience, not just in Britain but in the United States and globally." Barry Eichengreen University of California, Berkeley "A preoccupation with public good is what distinguishes this book from others about the crisis. The authors take a broader perspective in exploring new approaches for understanding the functions of banks and financial markets. It is particularly refreshing to see the London School of Economics re establishing its traditional leadership in social sciences research oriented towards social welfare advancement." Jean Charles Rochet University of Zurich and Toulouse School of Economics "As we look forward to the reform of the financial system, there is a need for a more fundamental review of the nature of financial intermediation, its scope and size. This volume is in the best traditions of the LSE in weaving together the perspectives of academics and policymakers to address a topic of great importance. It is a must read for anyone who wishes to delve deeper into the policy issues." Hyun Song Shin Princeton University

Financial crises have dogged the international monetary system over recent years. They have impoverished millions of people around the world, especially within developing countries. And they have called into question the very process of globalisation. Yet there remains no intellectual consensus on how best to avert such crises - much less resolve them. Policymakers stand at a crossroads. This volume summarises and evaluates these issues, drawing on contributions by prominent international experts in the field. It considers whether the IMF may have actually fanned the flames of future crises through its lending decisions. It assesses the contribution made by private creditors in resolving past crises - and asks what mechanisms might best be used to involve private creditors in the future. It also assesses the merits of two recent competing blueprints for architectural reform - the so-called contractual and statutory approaches to crisis resolution. These issues will shape the debate on the future of the international monetary system over the next decade and, probably, beyond. For although crises may always be with us, better public policy can surely help mitigate their future cost and incidence. With an impressive array of internationally based contributors, this book will deserve a place on the bookshelves of economists and policy-makers in both the official and private sectors.

Financial crises have dogged the international monetary system over recent years. They have impoverished millions of people around the world, especially within developing countries. And they have called into question the very process of globalisation. Yet there remains no intellectual consensus on how best to avert such crises - much less resolve them. Policymakers stand at a crossroads. This volume summarises and evaluates these issues, drawing on contributions by prominent international experts in the field. It considers whether the IMF may have actually fanned the flames of future crises through its lending decisions. It assesses the contribution made by private creditors in resolving past crises - and asks what mechanisms might best be used to involve private creditors in the future. It also assesses the merits of two recent competing blueprints for architectural reform - the so-called contractual and statutory approaches to crisis resolution. These issues will shape the debate on the future of the international monetary system over the next decade and, probably, beyond. For although crises may always be with us, better public policy can surely help mitigate their future cost and incidence. With an impressive array of internationally based contributors, this book will deserve a place on the bookshelves of economists and policy-makers in both the official and private sectors.

Drawing on wide-ranging contributions from prominent international experts and discussing some of the most pressing issues facing policy makers and practitioners in the field of payment systems today, this volume provides cutting-edge perspectives on the current issues surrounding payment systems and their future. It covers a range of continually important topics, including: the form payment systems might take in the future the risks associated with this evolution the techniques being deployed to assess these risks and the implications these risks have for the respective roles of the public and private sector. Produced in association with the Bank of England, this book is fascinating reading for practitioners and policy makers in the field of payment systems, as well as students and researchers engaged with the economics of payments and central banking policy.

Drawing on wide-ranging contributions from prominent international experts and discussing some of the most pressing issues facing policy makers and practitioners in the field of payment systems today, this volume provides cutting-edge perspectives on the current issues surrounding payment systems and their future.

It covers a range of continually important topics, including:

• the form payment systems might take in the future
• the risks associated with this evolution
• the techniques being deployed to assess these risks and the implications these risks have for the respective roles of the public and private sector.

Produced in association with the Bank of England, this book is fascinating reading for practitioners and policy makers in the field of payment systems, as well as students and researchers engaged with the economics of payments and central banking policy.