Michael Mainelli and Bob Giffords
Centre for the Study of Financial Innovation, ISBN: 978-0-9561904-4-4, 62 pages.
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In "The Road to Long Finance: A Systems View of the Credit Scrunch", co-authors Michael Mainelli and Bob Giffords argue that only systemic wisdom will provide a long-term solution to the crisis. A return to "business as usual" will leave un-addressed such important problems as ‘too big to fail’; abusive risk-taking; perverse incentives; and a dangerous lack of diversity within the system. Simply tightening the current system of regulation will not work because the crisis was "not a failure of open markets but a failure of highly regulated markets due to unexpected consequences of regulation and private decisions". This publication laid out the foundations for Long Finance to emerge and develop as the initiative it is today.
This free-to-download report was published as part of the Long Finance publications with the Centre for the Study of Financial Innovation (CSFI) in July 2009 (press release).