# Financial innovation

`kaal:entity:financial-innovation`

**Status.** derived

This node is assembled mechanically from the 6 claims that carry the concept tag `financial-innovation`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself.

## Every claim under this term

6 claims across 4 works, 2009 to 2013.

**2009**

- [1428387-029](https://wulfkaal.github.io/claims/1428387-029) [failure/argued] *(failure mode)* -- Limiting the use of hard-to-value assets and complex financial products is very unlikely to have positive effects, because the implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.
  > assets. It is very unlikely that limiting the use of financial instruments will have positive effects. The implicit inhibition of financial innovation would probably limit investors' use of hedging products and interfere with economic expansion.232
  Kaal, Hedge Fund Valuation Retailization, Regulation, and Investor Suitability (2009). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1428387

**2010**

- [1558614-030](https://wulfkaal.github.io/claims/1558614-030) [mechanism/argued] *(failure mode)* -- The more a country leads in financial innovation, the more exposed its disclosure regime is to misrepresentation and fraud, which makes the U.S. regime more vulnerable than Germany's despite being formally stricter.
  > to the extent financial innovation in the United States is ahead of that in Germany, the U.S. disclosure regime may be more vulnerable to misrepresentation and fraud
  Painter and Kaal, Initial Reflections on an Evolving Standard Constraints on Risk Taking by Directors and Officers in (2010). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1558614

**2013**

- [2273857-012](https://wulfkaal.github.io/claims/2273857-012) [design/argued] -- Dynamic elements built into the regulatory structure would allow regulators to continually adapt to new market environments, to financial innovation, and to changes in financial markets that are themselves caused by financial regulation.
  > Dynamic elements in the regulatory structure may allow regulators to continually adapt to new market environments, financial innovation, and to changes in financial markets as a result of financial regulation.
  Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857
- [2273857-040](https://wulfkaal.github.io/claims/2273857-040) [predictive/argued] -- Future financial crises may be inevitable, because globalization, financial innovation, ethical challenges, suboptimal institutional designs, and the bounded rationality of decision makers create conditions that produce crises.
  > Future financial crises may be inevitable. Factors such as globalization, financial innovation, ethical challenges, suboptimal institutional designs, and the bounded rationality of decision makers may create conditions that result in future crises.
  Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857
- [2273857-044](https://wulfkaal.github.io/claims/2273857-044) [mechanism/argued] -- The increasing volatility of financial markets combined with financial innovation parallels the pace of technological development in telecommunications, the industry where dynamic regulation has predominantly been applied.
  > The increasing volatility of financial markets in combination with financial innovation shows some parallels to the pace of technological developments in telecommunications markets.
  Wulf A. Kaal, Dynamic Regulation of the Financial Services Industry (2013). SSRN: https://ssrn.com/abstract=2273857
- [kaal-2013-acomparativeperspectiveo-030](https://wulfkaal.github.io/claims/kaal-2013-acomparativeperspectiveo-030) [predictive/argued] -- Financial innovation, the globalization of markets, transnationalism, ethical challenges, and the bounded rationality of humans are likely to create and increase future challenges that require additional and more extensive governance adjustments.
  > Financial innovation, the globalization of markets, transnationalism, ethical challenges, and the bounded rationality of humans, among many other factors, are likely to create and perhaps increase future challenges that may require additional and perhaps more extensive governance adjustments.
  Kaal, A Comparative Perspective on the Limitations of the Duty of Oversight – A Comment on Lisa Fairfax (2013)

## Verify

Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust.

    curl -s https://wulfkaal.github.io/entities/financial-innovation.md | sha256sum

**Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.