Financial engineering and financial innovation
What part, if any, do they have in a Green New Deal Economy? Workshop led by Troy Nutley.
Workshop outline
Aim – To explore to what extent merchant banking, which many commentators blame for the GFC, has a place in a Green New Deal Economy, and whether merchant banking should be regulated or unregulated.
Format – round table discussion facilitated by me with some handouts from various published articles for prompting discussion.
Outcome – Hopefully to develop some policy ideas that the Greens can then use to develop a financial services policy, which is currently lacking in many ways.
Background
Australia has the seventh largest stock market in the world. Financial services accounts for about 8% of GDP, making it the third largest industry in Australia. It is also the fastest growing industry which means that it is an area that the Greens should have comprehensive policies on. In the context of “Prosperity Without Growth”, how do the Greens provide for a financial services framework that caters to the demand for financial services, and what role does financial engineering and financial innovation play in that framework? For background – see securitisation, asset-backed securities, financial derivatives, credit default swaps, sub-prime mortgages, micro-finance, and financial innovation. Technical knowledge of financial instruments and markets is not necessary to contribute to the discussion, as this workshop is aimed at developing broad policies that can be related to the laypersons in the public.
