Avoiding Another Meltdown
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The authors argue that the current financial crisis, the worst since the Great Depression, can be seen as the latest phase in the evolution of financial markets under a radical financial deregulation process that began in the late 1970s. Deregulation accompanied by rapid financial innovation stimulated powerful booms that ended in crises. But governments responded to the crises with new bailouts that allowed new expansions to begin. As a result, financial markets have become ever larger, and the crises have become more threatening to society, which forces governments to enact ever larger bailouts. The authors provide a comprehensive set of regulatory solutions they believe will sharply reduce financial instability.
James Crotty and Gerald Epstein. "Avoiding Another Meltdown" Challenge 52.1 (2009): 5-26.
Available at: http://works.bepress.com/james_crotty/32