Claus D. Zimmerman
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199680740
- eISBN:
- 9780191760686
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199680740.003.0004
- Subject:
- Law, Public International Law, Company and Commercial Law
This chapter aims to contribute to a better understanding of the following two-fold question: To what extent can a contested practice like the maintenance of an undervalued real exchange rate be ...
More
This chapter aims to contribute to a better understanding of the following two-fold question: To what extent can a contested practice like the maintenance of an undervalued real exchange rate be dealt with effectively under existing international law? Intrinsically related, which are the key aspects on which the IMF’s code of conduct would require reform in order to tackle contemporary challenges to the stability of the international monetary system, such as global current account imbalances? After assessing whether the code of conduct in IMF Article IV:1 constitutes an effective framework for securing systemic stability, this chapter assesses the extent to which WTO rules might constitute an alternative for tackling an undervalued real exchange rate as a prohibited export subsidy. Finally, the chapter looks at overarching conceptual issues and at the G-20’s ongoing efforts to reduce global current account imbalances as one of the underlying key challenges to systemic stability.Less
This chapter aims to contribute to a better understanding of the following two-fold question: To what extent can a contested practice like the maintenance of an undervalued real exchange rate be dealt with effectively under existing international law? Intrinsically related, which are the key aspects on which the IMF’s code of conduct would require reform in order to tackle contemporary challenges to the stability of the international monetary system, such as global current account imbalances? After assessing whether the code of conduct in IMF Article IV:1 constitutes an effective framework for securing systemic stability, this chapter assesses the extent to which WTO rules might constitute an alternative for tackling an undervalued real exchange rate as a prohibited export subsidy. Finally, the chapter looks at overarching conceptual issues and at the G-20’s ongoing efforts to reduce global current account imbalances as one of the underlying key challenges to systemic stability.
Claus D. Zimmermann
- Published in print:
- 2013
- Published Online:
- January 2014
- ISBN:
- 9780199680740
- eISBN:
- 9780191760686
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199680740.001.0001
- Subject:
- Law, Public International Law, Company and Commercial Law
This book analyses whether the concept of monetary sovereignty is evolving under the impact of economic globalization and increasing financial integration, and assesses what this implies. Chapter 1 ...
More
This book analyses whether the concept of monetary sovereignty is evolving under the impact of economic globalization and increasing financial integration, and assesses what this implies. Chapter 1 reviews the origins of the concept of monetary sovereignty and concludes that, as a dynamic concept with both positive and normative components, monetary sovereignty cannot become eroded under the impact of legal and economic constraints. Chapter 2 examines the ongoing hybridization of international monetary law arising from changes in the sources of this body of law, from the unsuitability of the categories of “hard” and “soft” law for characterizing all normative evolutions in this field, and from the emergence of transnational monetary law. Chapter 3 scrutinizes the phenomenon of exchange rate misalignment under monetary and trade law. Intrinsically related, it assesses which aspects of the IMF’s legal framework should be reformed to tackle contemporary challenges to the stability of the international monetary system, such as global current account imbalances. Chapter 4 analyses the increasing regionalization of monetary sovereignty through monetary union movements. In this context, relevant aspects of the European sovereign debt crisis are examined in detail. It is argued that, as long as transferring sovereign powers to a monetary union is what provides a state’s population with maximum monetary and financial stability, the underlying transfers are not a surrender of monetary sovereignty, but its effective exercise under the form of cooperative sovereignty. Finally, chapter 5 looks into the ongoing reorganization of the international financial architecture and assesses whether the experience of the Global Financial Crisis has prompted states to rethink the way sovereign powers in monetary and financial matters are exercised.Less
This book analyses whether the concept of monetary sovereignty is evolving under the impact of economic globalization and increasing financial integration, and assesses what this implies. Chapter 1 reviews the origins of the concept of monetary sovereignty and concludes that, as a dynamic concept with both positive and normative components, monetary sovereignty cannot become eroded under the impact of legal and economic constraints. Chapter 2 examines the ongoing hybridization of international monetary law arising from changes in the sources of this body of law, from the unsuitability of the categories of “hard” and “soft” law for characterizing all normative evolutions in this field, and from the emergence of transnational monetary law. Chapter 3 scrutinizes the phenomenon of exchange rate misalignment under monetary and trade law. Intrinsically related, it assesses which aspects of the IMF’s legal framework should be reformed to tackle contemporary challenges to the stability of the international monetary system, such as global current account imbalances. Chapter 4 analyses the increasing regionalization of monetary sovereignty through monetary union movements. In this context, relevant aspects of the European sovereign debt crisis are examined in detail. It is argued that, as long as transferring sovereign powers to a monetary union is what provides a state’s population with maximum monetary and financial stability, the underlying transfers are not a surrender of monetary sovereignty, but its effective exercise under the form of cooperative sovereignty. Finally, chapter 5 looks into the ongoing reorganization of the international financial architecture and assesses whether the experience of the Global Financial Crisis has prompted states to rethink the way sovereign powers in monetary and financial matters are exercised.
