About Quote by Ha-Joon Chang
“If we are really serious about preventing another crisis like the 2008 meltdown, we should simply ban complex financial instruments unless they can be unambiguously shown to benefit society in the long run.”
About This Quote
Source Book: Economics of Financial Crises, 2020
He argues banning complex financial instruments unless proven socially beneficial to prevent future crises.
In simple terms: Ban complex finance unless socially beneficial.
Key Takeaway
Regulate risky finance.
Themes
economics
regulation
risk
societal benefit
Mood
cautious
analytical
Type
policy
academic
When to use this quote
- legislative proposals
- banking reforms
- investment strategies
Key Concepts
financial stability
public policy
ethical finance
Questions to Reflect On
- How to balance innovation and safety?
- What criteria define societal benefit?
A Different Perspective
Implementation may stifle innovation.
![“Joseph Schumpeter emphasized that all analysis in economics is preceded by a pre-analytical cognitive act, called vision, in which the analyst ‘visualise[s] a distinct set of coherent phenomena as a worth-while object of [his] analytic efforts’. He pointed out that ‘this vision is ideological…” quote by Ha-Joon Chang](https://sms4smile.com/quotes/img-quotes/828/ha-joon-chang-3497_dreams_joseph-schumpeter-emphasized-that-all-an_438236.jpg)
