Public Accountability and Parliamentary Scrutiny in Finance

Abstract

The purpose of parliament is to present a discussion of policy in a fashion that will bring about a consensus that results in collective action. Such a collective action serves the common good of the state, although second-order effects and Pareto optimality is difficult – if not impossible – to obtain. Parliament attempts to address the second-best world in a socially optimal fashion. As such, accountability and scrutiny are the key tools through which such a body can address the challenges faced by a financial sector confronted with profound difficulties. Such accountability is of paramount importance to provide sustainable public trust in parliament.