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Innovationen und Transatlantische Bankenkrise: Eine ordnungspolitische Analyse

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  • Paul J.J. Welfens

    (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))

Abstract

The US banking crisis and the transatlantic banking crisis, respectively, have caused a global recession and thus raised the debt-GDP ratio in many OECD countries and worldwide. In the analysis presented at first some critical points about financial market innovations and inconsistencies in the institutional framework of the economies are raised. Moreover, the main drivers of the banking crisis have been identified and at the same time a short list of key pro-posals for reforms are presented; a major element for national policymakers here is the introduction of a new tax system which taxes the variance of the rate of return on equity capital - this is an institutional innovation which would criti-cally affect the incentives in the banking sector. The main impact is not necessar-ily to raise the overall tax burden for the banking sector but rather to give incen-tives for sustainable banking: Bankers should face incentives to take a more long term view and to thereby contribute to systemic stability in the banking sector and in the overall economy. Governments which consider responsible economic policy reforms as a key priority on the way to more stability and also as a means for limiting the debt-GDP ratio will pick up the proposed innovation in tax pol-icy. Some of the relevant potential key features based on German data are sketched in the analysis presented. The analysis presented here shows the relevance of institutional developments for the banking crisis and also highlights the need to adequately adjust the institutional framework in OECD countries.

Suggested Citation

  • Paul J.J. Welfens, 2009. "Innovationen und Transatlantische Bankenkrise: Eine ordnungspolitische Analyse," EIIW Discussion paper disbei171, Universitätsbibliothek Wuppertal, University Library.
    • Handle: RePEc:bwu:eiiwdp:disbei171
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    References listed on IDEAS

    as
    1. Paul J. J. Welfens & Cillian Ryan & Suthiphand Chirathivat & Franz Knipping (ed.), 2009. "EU - Asean," Springer Books, Springer, number 978-3-540-87389-1, June.
    2. Matthieu Bussière & Simona Delle Chiaie & Tuomas A Peltonen, 2014. "Exchange Rate Pass-Through in the Global Economy: The Role of Emerging Market Economies," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 62(1), pages 146-178, April.
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    9. Paul J.J. Welfens & John T. Addison (ed.), 2009. "Innovation, Employment and Growth Policy Issues in the EU and the US," Springer Books, Springer, number 978-3-642-00631-9, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Institutionelle Inovationen; Innovationen in Steuerpolitik; Bankenkrise; nachhaltige Enwicklung;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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