The Financial Crisis
A Market of a Government Failure?
The debate questioned the causes of the global financial crisis. Professor Pascal Salin argued in favour of the free market and criticised the role of governments, opposing Professor Valpy Fitzgerald who claimed that market failure was largely responsible for the current financial crisis and its economic consequences.
Professor Salin, a prominent proponent of the Austrian School of economics, asserted that capitalism was the only ethical system since it guaranteed the fundamental property rights underpinning individual liberty. In his view, it was the Federal Reserve System and its lax monetary policy, as well as the American government’s intervention in the housing market, which led to the events that have unfolded in the past year.
In response, Professor Fitzgerald maintained that the financial crisis was attributable both to the market failure and to society’s inability to develop international law on financial and economic issues, stressing that the unfettered role of the markets frequently threatened the far more fundamental right to life of individuals in developing countries.
› Moderator: Colin Meyer, Professor of Management Studies and Peter Moores Dean at the Said Business School
›Valpy Fitzgerald, Director of the Queen Elizabeth House and Professor of Inter-national Development, Oxford University
›Pascal Salin, Professor, Universite Paris-Dauphine