Katharina Pistor: Creating a Socially Useful Financial System 1/5

The video explores the question of creating a socially useful financial system, highlighting the need for a redefined financial sector. It introduces speakers with diverse backgrounds and delves into regulatory challenges, emphasizing the hierarchical nature of financial markets. Two case studies are presented: the Federal Reserve's response during the financial crisis and the credit market dynamics in Central and Eastern Europe. The discussion underscores the importance of understanding global financial systems and the need for adaptive regulation.

What is considered the most exciting question regarding the financial system?

• How to expand the financial sector

• How to reduce taxes for banks

• How to create a socially useful financial system

• How to increase bank profits

What is the consensus about the financial sector's size?

• It should grow larger

• It should remain the same

• It should shrink in the long term

• It should be eliminated

What is the professional background of Katerina Pistor?

• Banker

• Economist

• Politician

• Law Professor

What is a key characteristic of financial markets according to the speaker?

• They are simple to regulate

• They are deeply hierarchical

• They are always in equilibrium

• They are predictable

What is a major challenge in regulating financial markets?

• Too many regulations

• Hierarchical structure

• High transaction costs

• Lack of technology

What was a significant legal innovation in 1968?

• The deregulation of banks

• The creation of the Federal Reserve

• The introduction of securities mortgage

• The establishment of the IMF

What is a consequence of standardized global rules?

• Elimination of financial crises

• Increased financial stability

• Uniform benefits for all countries

• Unsustainable conditions for lower-tier countries

What is a proposed shift in regulatory approach?

• From market-based to entity-based

• From decentralized to centralized

• From last man standing to first man falling

• From hierarchical to flat

What is a risk associated with free capital mobility?

• Volatility of global markets

• Reduced global trade

• Stable economic growth

• Increased local investment

What is a key recommendation for future financial regulation?

• Decentralize regulatory power

• Eliminate all regulations

• Focus on information disclosure

• Increase standardization