Banks 'should be smaller and easier to close', says economist

By agency reporter
May 1, 2009

In a keynote presentation to a conference in Cambridge on Bank Holiday Monday, an international economist and former advisor to the Treasury will argue that banks ‘too big to fail’ are ‘too big to exist’.

International economist Dr Paul Mills is to say that banks should be made smaller and easier to close.

Organised by the social reform charity ,the Jubilee Centre, the conference will identify the steps we need to take in order to rebuild the economy and avoid a repeat of the current recession.

"At a time when policy makers and commentators alike are still looking for a scapegoat for the present recession, here is a constructive alternative to the debt-based finance system that has plunged us into the worse economic crisis since the 1930s," said the charity’s director, Dr John Hayward.

For more than 25 years, the Jubilee Centre has explored whether there is a Christian-based alternative to socialism and capitalism and whether the Bible has anything distinctive to say about public policy beyond general goals such as stewardship and justice.

Speaking in a personal capacity on the topic The Economy in Crisis: A Biblical Diagnosis and Foundation for Recovery, Dr Mills will offer a contribution to the current debate in which policy makers, bankers, and concerned citizens alike are all asking, ‘Where do we go from here?’, says the Centre.

Author of a number of past Cambridge Papers, including The ban on interest (1993), Investing as a Christian (1996), and Globalization and the world economy (2003), Dr Mills has worked at the UK Treasury and the UK Debt Management Office. He currently works for the IMF, where his interests include global financial stability, the US financial system, innovative risk transfer, climate change and financial markets, and Islamic finance. His contribution to the conference is in a personal capacity only.

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