Citation

Discussion Paper Details

Please find the details for DP11846 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: The End of Alchemy: A Review Essay

Author(s): Roger E A Farmer

Publication Date: February 2017

Keyword(s): Banking, financial crisis, money and public policy

Programme Area(s): Monetary Economics and Fluctuations

Abstract: I review The End of Alchemy by Mervyn King, published by W.W. Norton and Company in 2016. I discuss King's proposed regulatory reform, the `Pawn Broker for All Seasons' (PFAS) and I compare it to an alternative solution developed in my own work. I argue that unregulated trade in the financial markets will not, in general, lead to Pareto optimal allocations. As a consequence, solutions like the PFAS that correct problems with existing institutions are likely to be circumvented by the development of new ones.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11846

Bibliographic Reference

Farmer, R. 2017. 'The End of Alchemy: A Review Essay'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=11846