1 thought on “The systemic risk of international financial regulation (Part 1)”

  1. Posted 24/06/2015 at 15:18 | Permalink

    Accountants have been trying to achieve ‘harmonisation’ between International Financial Reporting Standards and US Generally Accepted Accounting Principles for more than ten years now. But the good news is that their prolonged attempt to establish a global accounting monopoly has so far failed miserably. That means the investing public and others concerned with accounts can still get the benefit of competition (which Hayek famously referred to as ‘a discovery procedure’). At least the existence of two different sets of accounting standards suggests that there is no such thing as a single ‘correct’ answer. (Even if there were, I very much doubt that regulators would come up with it.)

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