Watch the highlights of Professor Robert Merton's speech.
The Institute of Global Finance recently held a business forum for Nobel Laureate Professor Robert Merton from MIT in Sydney on November 8, 2013.
Professor Merton spoke on global banking stability and the role of financial innovation in transforming global finance and increasing productivity in the finance industry.
He gave the example of a number of financial instruments over the last 30 years or so that have been crucial in increasing financial globalisation and ensuring better free flow of capital and financial services around the world.
While Professor Merton was happy for a more effective global framework to coordinate amongst various financial instruments that could increase innovation, he also highlighted the importance of maintaining a balance between regulation and innovation.