The politics of financial sector reform

This thesis presents a detailed case analysis of the evolution of regulatory policy in the financial sector in Canada between 1981 and 1991. The thesis adopts both normative and positive analyses of the issue to determine whether economic or political factors were more important in shaping policy outcomes in the sector. While both played a role, the author concludes the political dynamics of the policy-making process were far more influential than the application of objective economic norms. Yet, a positive analysis alone is insufficient in explaining policy outcomes in the financial sector. Exogenous events, the length time involved in formulating and implementing policy changes and the impact of overlapping federal-provincial jurisdiction in the sector further frustrated attempts to engineer policy changes.Business, Sauder School ofGraduat