When considering to reform the financial sector in the aftermath of a financial crisis (e.g. after the recent Global Financial Crisis), what approach yields the best results? It looks like authorities worldwide try to put in place mechanisms which (seem to) tackle head on the negative effects brought by the crisis. Such an approach can be misleading for sure. This is because in an effort to bring about stability you end up treating the symptoms of the problem instead of the problem itself.
In my opinion, authorities have not shown any serious effort to distinguish the symptoms from the problem. Is there a mechanism which identifies the problem and clearly distinguishes it from the symptoms? I think that's a NO. Ignoring this results in efforts which are doomed to fail.
What's needed is a rigorous intellectual process free from subjective (political e.t.c.) biases to find a solution. Whether the quest to find a solution is led at the UN, G7 or G20 level, a process without considering the above is futile.
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