Bill White: "The current financial system is inadequate"

On this blog I have included on various occasions the views of Avinash Persaud and Bill White (see e.g. posts of June 29, May 7, and May 4, 2008). A few days ago, Avinash sent me an e-mail to thank me and others for the support we gave to his work "on the inevitable failure of banking regulation". He referred to a column by Martin Wolf in the Financial Times who had praised, among others, Bill White and Avinash for their excellent writings on the dangers of a credit crisis.

I would like to draw your attention to a speech made by Bill White on the prevention and management of financial crisis. In the speech he addresses the important issue of whether the current international financial architecture is adequate.

"My answer must be that it is not," says Bill White. "Financial crises are generally enormously costly, and we have been faced with them repeatedly over the course of the last few decades. Indeed, we are currently in the midst of a crisis which, being at the heart of the global financial system, could turn out to be the worst of them all."

If you want to read Bill's analysis you can click here.