Accounting, Economics, and Law: A Convivium
Ed. by Avi-Yonah, Reuven S. / Biondi, Yuri / Sunder, Shyam
3 Issues per year
Power of Inaction or Ability to Learn in Action within a Political Process? Comments on “The Power of Inaction” by Cornelia Woll
How to best describe and assess the result of a bailout process? The author argues that the power of inaction of banks while relevant, as argued by Cornelia Woll in her book, is not sufficient to characterize the result of a bailout process. As such result should encompass financial stability and business cycle considerations, the power of inaction of banks needs to be viewed in combination with the ability of authorities to learn in action and the quality of the legal and political process that accompanies such learning.