| Abstract: | This paper examines the changes that have been made to the global financial architecture in the aftermath of the financial crisis and argues that the reforms are confronted with a paradox. Intervention is required to ensure the smooth running of the economy, yet too heavy a hand risks disrupting a central circuit of capital. We have recently witnessed a tightening of the regulatory mechanism such that the parameters of risk taking have been reduced—financial activity now modulates within a more risk adverse environment. Yet, the reforms are not as radical as they could have been, reflecting the need to ensure effective and efficient circulation within an increasingly important area of the economy. However, a stronger emphasis on pre-emptive surveillance has emerged, which may partly compensate for the lack of radical reforms in other areas. |
