14 September 2021
An article by a lecturer at the School of Business and Administrative Sciences of the University of Georgia was published on the website of the American scientific publication "Springer".
On August 3, 2021, Akaki Tsomaia, an associate professor at the University of Georgia, wrote the article " Soap bubbles on assets, financial sector and current challenges for the regulator. "It was placed on the website of the prestigious magazine of academic materials" Springer ". The author himself answers the questions we asked about the article.
1. What effect can the result of this research have on human existence?
The paper deals with the causes of financial crises and the modern challenges of regulating the financial system. We argue that the current model of regulation cannot prevent either soap bubbles on assets or a new financial crisis in the future. We are fighting the result, the problem of generating money deficits, and not the cause of this result, which we can conventionally call an ugly financial system. Based on universal truth, we develop an idea/ concept at an intuitive level and assume that an effective system of regulation cannot be developed without considering this idea.
2. How can students get involved in this field of research and why would you advise them to do so?
For the past three centuries, the world has been moving in the same circle. Soap bubbles are periodically formed on assets that burst over time, which sometimes causes the financial system to collapse and results in a financial crisis. The economic boom phase creates a favorable ground for the development of soap bubbles on assets. As a rule, financial institutions play an important part in this process, among which are led by deposit institutions. Interested students in economic and financial profiles can engage and actively participate in ongoing debates about ways to transform the modern financial system. The debate becomes particularly relevant after the global financial crisis of 2007.
3. What were the main challenges and skills associated with this research?
The main challenge is that the field of research is relatively new, and it is still not possible to fully evaluate the empirical data on the results of macro point regulation. As for skills, they require a deep knowledge of economic disciplines, banking systems, and research methods.
4. Why are you interested in researching this issue?
As I mentioned, the issue is relevant and at this stage, it is a puzzle for economic experts and politicians.
5. What additional funding and support did this research have?
I did not have additional funding. The support of the University of Georgia was enough to publish the paper. The university really cares about both the development of academic staff and researchers and the presentation of their professional skills.
