The fall of a financial model By Jean-Louis Beffa and Xavier Ragot Published: February 21 2008 17:26 | Last updated: February 21 2008 17:26 Recent changes in the world economy and financial markets mark the end of the present standard model of financial capitalism, built up over the last decade or so. In this model, financial stability is mainly based on the self-regulation of the financial sector, which alone assesses the risks produced by its financial innovations. Moreover, the link between finance and the real economy hinges on an adequate return on investment for shareholders, who punish poor management by...