The international financial crisis that started in the summer of 2007 has produced a wide-ranging dialogue regarding the cause and the rationale of bankers and banking in todays’s market. But, the continuing debate infrequently addresses questions of business approaches in the financial industry. Really, while 'motivators,' 'vested interests,' power, and -increasingly- social utility are often factored into scrutiny of financial regulation, approach and the policy of financial institutions are infrequently conversed methodically in academic and policy contest. Nevertheless, we consider that these two fundamentals are decisive to accepting the monetary system, much less a mere sector of the broader economy but as a business enterprise twisted by several diverse company strategies of its own essential representatives and driven by its own logic.
Our key supposition is the truth that the principal reason driving the practice often described as 'financialization' or financial innovation is the sabotage intuition of finance running as company. Whereas Veblen initially understood sabotage as ''meticulous withdrawal of efficiency,'' now, we argue, the working of the banking and fiscal sector augment the very notion of efficiency by relying on theories, techniques, and institutions of financial innovation that are shrouded in complexity. In this article, we examine conceptual, institutional, and picked policy aspects of the phenomenon.
Sabotage in the Financial System Lessons from Veblen case study solution
PUBLICATION DATE: November 15, 2013 PRODUCT #: BH568-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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