Bans 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. This is what we do all the time with other products-drugs, cars, electrical products and many others.”
About This Quote
Complex financial tools should be banned unless proven to have clear long‑term societal benefits, similar to regulations on other products.
In simple terms: Ban risky finance unless clearly beneficial.
Key Takeaway
Require transparent proof of societal benefit before allowing complex finance.
Themes
regulation
finance
risk management
public policy
ethics
Mood
cautious
critical
Type
policy
analytical
When to use this quote
- banking oversight
- investment decisions
- product safety reviews
Key Concepts
externalities
systemic risk
benefit analysis
Questions to Reflect On
- How can we reliably assess long‑term societal benefits?
- What safeguards could allow safe use of complex finance?
A Different Perspective
Complex instruments may still be needed for innovation; outright bans could stifle beneficial financial engineering.
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