Are today's financial markets over-regulated, optimally normatively regulated or overly deregulated and liberalised in their functioning?

Since the commodity crisis of the 1970s, financial markets have been deregulated in many respects. The Bretton Woods international monetary system based on USD dollar parity collapsed (gold parity for the USD dollar was abolished). In the 1990s, many issues of the operation of deposit-credit commercial banks and investment banks were deregulated again.

It was made possible for the two types of banking to merge. This had its effects in generating the global financial crisis of 2007-2009. Due to the deregulation of financial markets, systemic credit risk increased significantly. The importance of improving the credit risk management process implemented in financial institutions, including commercial and investment banks, also increased. In many countries, the practice of money printing without coverage of manufactured products was practised, leading to increased inflation and, in some countries, to the occurrence of hyperinflation. Too low interest rates and government guarantees and other elements of a soft monetary policy led to too cheap money, too high a level of credit for economic activity and too high a level of credit risk, a decline in the repayment of bank loans and, as a consequence, to financial, economic and debt crises, etc. Derivatives specifically generated for this purpose, including credit derivatives such as subprime bonds, CDOs, etc., sold by investment banks to successive investors to generate additional money for unreliably (with practically no credit checks) granted mortgages, led to the major global financial crisis of 2008 in 2007-2009. I have been researching this issue. I have included the conclusions of my research in articles which, when published, I posted on my profile of this Research Gate portal. I invite research collaboration. I would like to hear your views on this issue.

In view of the above, the following question is topical:

Are the current financial markets over-regulated, optimally normatively regulated or are they too deregulated and liberalised in their functioning?

What do you think about this topic?

Please reply,

I invite you all to discuss,

Thank you very much,

Greetings,

Dariusz Prokopowicz