Responsibility and Accountability in the Financial Policy

The seminar is based on one of the four public lectures on central banking topics delivered in late 2013 as part of the NZ-UK Link Visiting Professorship at the University of London. This seminar, which was originally delivered at the Institute of Advanced Legal Studies, deals with micro-prudential and related policy topics. It develops the key theme that financial sector policies need to be structured so as to internalise risks within financial institutions, rather than having those risks borne outside, ultimately by the taxpayer. It draws on banking theory, and on historical as well as more recent examples in developing this theme.