Archive for January 2nd, 2010

Is Financial System Dysfunctional?

January 2, 2010

Adair Turner’s speech and Prospect’s top 25 list alerted me to the work of Paul Woolley. Paul Woolley has worked in financial firms, at IMF, has taught in Univs etc. So he has seen it all.

He has been working to show how efficient financial markets theory is not right and we need a new paradigm.

He has set up a Paul Woolley Centre for the Study of Capital Market Dysfunctionality at LSE where much of the work is being done. Prospects Magazine calls him the Britain’s new financial guru. Also read this detailed article on his work in the same magazine.

Anyways, what does he mean by dysfunctional financial system? One should read his must read speech he gave in 2007. The speech was given as the crisis was setting in. So he was also one of the econs who talked about the problems with the fin system.

He says:


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