Responding to the Vatican Justice and Peace Commission's paper on financial regulation, Prof. Philip Booth, Editorial Director at the Institute of Economic Affairs, commented:
"The document makes some interesting points but, on close inspection, the position taken by the Commission is very weak.
“The sorts of systems of global financial regulation that the Commission calls for exacerbated the financial crisis as they led to many countries having the same failings in their banking systems at the same time. Indeed, many of the specific problems we faced in Anglo-Saxon banking systems were caused by financial institutions attempting to "game" regulations imposed by global financial regulators.
"Elsewhere, the proposal for a world fund to bail out banks is reckless. If anything, the current attacks on democracy, about which the Commission is concerned, are fuelled by the perceived injustice of banks being bailed out at the expense of taxpayers. The creation of a world bailout fund would raise moral hazard and lead to more reckles