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Fixing things?

Since 2008 was the year of breaking rules and financial models, 2009 should be the year of re-regulation and starting fixing problems.

This is the aim of a new report issued by The Group of Thirty: «Financial Reform: A Framework for Financial Stability [1]«. The document is interesting not only because of the authors -a group of notorious former big bosses, including Paul Volcker, from then Federal Reserve, or Ernest Stern, from the World Bank-, but also for its 18 specific policy recommendations.

I strongly recommend reading this report: it summarizes very concrete guidelines and action plans, from a macro and micro perspective, to financial and non-financial entities and dealing with the main topics (transparency, risk management, regulation, restoring confidence in the markets).

Let´s not forget that to manage a problem we have to understand the problem. This document is good step towards understanding the present situation.