P1:financial crisis/failure发生时/发生后,政府总会采取措施(Government tries to regulate the financial markets after the crisis.)
但是这些措施通常没有效果/会使整个市场更乱 (add more complexity, But the financial institutions/markets are very complex, so the regulations might only increase the complexity of the problem.)
但政府也不能什么都不做。
这是为什么呢?
P2:复杂的应对政策会加剧金融系统本身的复杂性。
金融系统的两个特性:(1)complexity;(2)“tightly coupled” to explain why the financial institutes are highly correlated and complex…
(金融市场的各个部门都是有联系的,当一个failure或者error发生各个部门都会受到影响)
P4:但是这不表示we should throw all gov't regulation out of the window.
政府应该在金融危机后,吸取以往crisis的经验(revise regulation),采取能降低系统风险的政策:
有两个方法能减少金融系统风险1)reduce complexity 2) add slack (好像是这么拼的)。(Q6)
Conclude that government regulations should be imposed before the crisis to reduce the complexity of financial institutes.
最后的结论是政府应该先reduce complexity 再实施regulation。(Q2)