Ponzis [electronic resource] : the science and mystique of a class of financial frauds / Kaushik Basu.
Saved in:
| Online Access: |
Full Text (via Open Knowledge Repository) |
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| Format: | Electronic eBook |
| Language: | English |
| Published: |
[Washington, D.C.] :
World Bank,
2014.
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| Series: | Policy research working papers ;
6967. |
| Subjects: |
| Abstract: | Ponzis are among the most ubiquitous and least understood phenomena of economic life. They acquired a certain salience with the global financial crisis of 2008 and the crash of Bernie Madoff's celebrated Ponzi scheme. This paper explains the structure of Ponzi schemes and goes on to argue that what makes this such a troubling phenomenon is its ability to be camouflaged amidst legitimate practices. It is shown, for instance, that the common practice of giving stock options to employees could be a potential Ponzi that allows corporations to flourish for a while by borrowing from its own future. The paper goes on to discuss the need for intelligent regulation to incise harmful Ponzis (not all Ponzis are harmful) while taking care not to damage other legitimate activities that surround them. |
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| Item Description: | "July 2014." "World Bank Group, Development Economics Vice Presidency, Office of the Chief Economist." |
| Physical Description: | 1 online resource (15 pages). |
| Bibliography: | Includes bibliographical references (page 13). |
| Source of Description, Etc. Note: | Online resource; title from pdf title page (Worldbank.org Web site, viewed March 25, 2015). |