When the Final Report of the Committee of Inquiry into the Australian Financial System (the Campbell Report) was released in November 1981, many were surprised and unprepared for the sweeping reforms that the committee had recommended. It would be fair to say that the diligence with which the committee went about its task is at least the equal of any previous government inquiry and the thoroughness with which economic analysis has been applied should, if nothing else, be good reason for the government not to ignore its recommendations. While some may disagree with the terms of reference —in particular the government’s free enterprise objectives — from which the committee worked, if the object is to improve the lot of all sectors of the Australian community, then most economists would believe (while perhaps differing on details), that the prescriptions laid down in the report will indeed move us some way along the path to this desired state.
But there are beneficiaries of regulation (some of the regulated; those members of the community who, for example, may have cheap loans; and the regulators themselves who may have nothing much to do if Australia moved along a deregulatory path) who have been heard grumbling, both openly, and furtively as they line up counter-arguments. It is thus crucial as the debate ensues, that a careful and objective study be made of all arguments for and against changes to the system.
The Centre for Independent Studies established its Readings series so that important issues may be examined from a number of points of view. It was felt that the result’s of the Campbell Committee’s work would be of such significance in the consideration of future public policy, that a volume of essays examining the principles underlying financial reform and written by specialist economists from around the world, would be a unique contribution to the analysis of the Campbell Report. It was of course impossible to cover every detail of the report and this was not the intention of this collection.
Assembled in this volume is the product of some speedy work on the part of the contributors and they are to be congratulated for producing what they have in such a short time. Special thanks must go to Professor Malcolm Fisher who guided the book from its inception.
A financial system, of whatever form, affects every member of society. No matter what the outcome of the recommendations for reform by the Campbell Committee, discussion on the financial system is unlikely to proceed without detailed reference to the report’s findings. In publishing this volume, the Centre for Independent Studies feels that a significant contribution will be made to the discussion on the important issue of financial reform. Nevertheless, the conclusions presented here are those of the authors and are not necessarily shared by the Centre, its Advisers, Trustees, Directors or officers.
— Greg Lindsay
