Chapter 5 The Utilitarian Fallacy

Abstract

At the present time (mid-2010), it is uncertain if the economic crisis is over or not as the recovery is dwindling and the pundits are talking us into a double dip recession. This crisis has however highlighted failures in governance and failures in regulation. Indeed, some writers have argued that the regulators are more guilty even than the perpetrators and should be sanctioned accordingly. There is of course one flaw in this argument and one problem with managing the prevention of future financial crises (Grabel, 2003) and this is concerned with the recognition of and regulation of a truly global market for finance. The liberalisation of financial markets instigated by the Washington consensus has made the free movement of funds a fact of financial life and has encouraged the parcelling together of doubtful debts into mystery parcels to be sold around the world.¹ And of course, the operators in all financial markets, always ready to accept a gamble in the hope of ever larger profits and bonuses, have been quick to respond.

Citation

Crowther, D. (2011), "Chapter 5 The Utilitarian Fallacy", Aras, G. and Crowther, D. (Ed.) Governance in the Business Environment (Developments in Corporate Governance and Responsibility, Vol. 2), Emerald Group Publishing Limited, Leeds, pp. 71-91. https://doi.org/10.1108/S2043-0523(2011)0000002008