Christopher Humphrey and Anne Loft
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780199546350
- eISBN:
- 9780191720048
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199546350.003.0010
- Subject:
- Business and Management, Organization Studies, Finance, Accounting, and Banking
In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international ...
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In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international regulators and the international accounting profession. In doing this he touched on a set of relationships and arrangements that over the subsequent fifteen years have developed into what is now widely recognized as the New International Financial Architecture (NIFA). In terms of global accounting regulation, the International Accounting Standards Board (IASB) has attracted significant research attention. However, far less attention has been paid to the global audit regulatory arena and, in particular, to the International Federation of Accountants (IFAC), which has standard setting boards responsible for international standards on auditing practice, ethics, and education. Responding to this gap, this chapter seeks to assess the contemporary pertinence of Hopwood's (1994) observations and reflections, using empirical and theoretical insights from the rapidly growing literature in the global governance field. What emerges in the field of global auditing regulation is a more complex and interlocking set of relationships than the ‘interfaces’ and ‘lobbying activities’ that Hopwood identified as taking place between regulators and the profession. The chapter describes this as a form of ‘coordinated network governance’ which is binding together international regulators and the international profession in an ongoing project attempting global governance in the audit arena.Less
In 1994, Anthony Hopwood wrote about the ‘very active politics’ in the emergent international arena in accounting and auditing, analyzing the institutional interfaces between the international regulators and the international accounting profession. In doing this he touched on a set of relationships and arrangements that over the subsequent fifteen years have developed into what is now widely recognized as the New International Financial Architecture (NIFA). In terms of global accounting regulation, the International Accounting Standards Board (IASB) has attracted significant research attention. However, far less attention has been paid to the global audit regulatory arena and, in particular, to the International Federation of Accountants (IFAC), which has standard setting boards responsible for international standards on auditing practice, ethics, and education. Responding to this gap, this chapter seeks to assess the contemporary pertinence of Hopwood's (1994) observations and reflections, using empirical and theoretical insights from the rapidly growing literature in the global governance field. What emerges in the field of global auditing regulation is a more complex and interlocking set of relationships than the ‘interfaces’ and ‘lobbying activities’ that Hopwood identified as taking place between regulators and the profession. The chapter describes this as a form of ‘coordinated network governance’ which is binding together international regulators and the international profession in an ongoing project attempting global governance in the audit arena.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.001.0001
- Subject:
- Economics and Finance, Financial Economics
This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the ...
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This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the origin and management of crises by relating the insights of the new literature on global games to earlier work on currency crises, bank runs, and sovereign debt default. It draws on recent research and policy work to examine the debate on the design of sovereign bankruptcy procedures, the role of the IMF in influencing the actions of creditors and debtors, and the role of private sector involvement in the management of financial crises.Less
This book offers an analytical perspective on the policy debate on the design and reform of the international financial architecture. It stresses the role played by coordination problems in the origin and management of crises by relating the insights of the new literature on global games to earlier work on currency crises, bank runs, and sovereign debt default. It draws on recent research and policy work to examine the debate on the design of sovereign bankruptcy procedures, the role of the IMF in influencing the actions of creditors and debtors, and the role of private sector involvement in the management of financial crises.
RUMU SARKAR
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195398281
- eISBN:
- 9780199866366
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195398281.003.005
- Subject:
- Law, Human Rights and Immigration, Public International Law
This chapter explains the international financial architecture supporting the financing of international development. It examines the international borrowing practices of sovereign states, and ...
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This chapter explains the international financial architecture supporting the financing of international development. It examines the international borrowing practices of sovereign states, and analyzes two case studies of the Mexican and Asian financial crises. These sovereign debt crises are examined from the standpoint of strategic and tactical approaches to resolving them, and preventing financial contagion in the future. The current global financial contagion, originating in the United States, and its impact on developing countries, is reviewed from a “lessons learned” perspective. Tactical approaches to resolving sovereign debt crises such as debt-for-debt exchanges, debt-equity swaps, debt securitization, credit facilities, and special financing techniques are critically reviewed. Finally, debt relief as a development strategy is critically examined. Explanatory text boxes and other graphics are provided to assist the reader absorb a complex area of law.Less
This chapter explains the international financial architecture supporting the financing of international development. It examines the international borrowing practices of sovereign states, and analyzes two case studies of the Mexican and Asian financial crises. These sovereign debt crises are examined from the standpoint of strategic and tactical approaches to resolving them, and preventing financial contagion in the future. The current global financial contagion, originating in the United States, and its impact on developing countries, is reviewed from a “lessons learned” perspective. Tactical approaches to resolving sovereign debt crises such as debt-for-debt exchanges, debt-equity swaps, debt securitization, credit facilities, and special financing techniques are critically reviewed. Finally, debt relief as a development strategy is critically examined. Explanatory text boxes and other graphics are provided to assist the reader absorb a complex area of law.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.003.0012
- Subject:
- Economics and Finance, Financial Economics
Provides a brief summary of the international financial architecture debate and suggest possible future directions for research.
Provides a brief summary of the international financial architecture debate and suggest possible future directions for research.
José Antonio Ocampo
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199254033
- eISBN:
- 9780191698187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199254033.003.0011
- Subject:
- Economics and Finance, Development, Growth, and Environmental
The Asian crisis and its rapid spread to Russia and Latin America in 1997 and 1998 gave rise to a broad consensus on the need to reform the international financial architecture in order to reduce the ...
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The Asian crisis and its rapid spread to Russia and Latin America in 1997 and 1998 gave rise to a broad consensus on the need to reform the international financial architecture in order to reduce the inherent instability of the current system. This chapter critically reviews the ongoing debate from the developing country perspective and argues the case for a thoroughgoing reform of the current architecture. It looks at the current controversy which is organised in terms of distinguishing the areas in which there is some agreement from those in which there is still a considerable divergence of opinion. This is an expository device, based on the chapter's perception of existing consensus and divergence. The chapter focuses on reforms needed to prevent and manage financial crises — what may be called the ‘narrow’ financial architecture — leaving aside issues relating to development finance, in particular.Less
The Asian crisis and its rapid spread to Russia and Latin America in 1997 and 1998 gave rise to a broad consensus on the need to reform the international financial architecture in order to reduce the inherent instability of the current system. This chapter critically reviews the ongoing debate from the developing country perspective and argues the case for a thoroughgoing reform of the current architecture. It looks at the current controversy which is organised in terms of distinguishing the areas in which there is some agreement from those in which there is still a considerable divergence of opinion. This is an expository device, based on the chapter's perception of existing consensus and divergence. The chapter focuses on reforms needed to prevent and manage financial crises — what may be called the ‘narrow’ financial architecture — leaving aside issues relating to development finance, in particular.
Barry Eichengreen
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199257430
- eISBN:
- 9780191698453
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199257430.003.0006
- Subject:
- Economics and Finance, Financial Economics
This chapter comments on the international community's crisis prevention and crisis resolution efforts. It suggests that though a variety of initiatives have been successful, two gaps remain. One is ...
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This chapter comments on the international community's crisis prevention and crisis resolution efforts. It suggests that though a variety of initiatives have been successful, two gaps remain. One is addressing the problems of the poorest countries because several elements of the so-called new international financial architecture have created further obstacles to their road to economic development. The other gap involves creating alternatives to bailouts for resolving crises in order to ease the pressure on the International Monetary Fund to extend to financial assistance.Less
This chapter comments on the international community's crisis prevention and crisis resolution efforts. It suggests that though a variety of initiatives have been successful, two gaps remain. One is addressing the problems of the poorest countries because several elements of the so-called new international financial architecture have created further obstacles to their road to economic development. The other gap involves creating alternatives to bailouts for resolving crises in order to ease the pressure on the International Monetary Fund to extend to financial assistance.
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/9780199680740.003.0006
- Subject:
- Law, Public International Law, Company and Commercial Law
Like earlier crises, the Global Financial Crisis has triggered a restructuring of the international financial architecture. The G-20 was revived to provide a forum for the leaders of the world’s ...
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Like earlier crises, the Global Financial Crisis has triggered a restructuring of the international financial architecture. The G-20 was revived to provide a forum for the leaders of the world’s largest economies to agree on reforms intended to promote global economic and financial stability. The Financial Stability Forum was re-established with increased responsibilities and an extended membership as the Financial Stability Board. The IMF increased its efforts to assess the financial sectors of its members and of their compliance with financial standards and codes. Finally, in order to increase the IMF’s legitimacy and effectiveness, the IMF’s membership has undertaken the largest-ever overhaul of the IMF’s governance structure. This chapter takes a succinct look at the key aspects of these reform avenues and assesses whether the experience of the Global Financial Crisis has prompted states to substantially change the way they exercise their sovereign powers in monetary and financial matters.Less
Like earlier crises, the Global Financial Crisis has triggered a restructuring of the international financial architecture. The G-20 was revived to provide a forum for the leaders of the world’s largest economies to agree on reforms intended to promote global economic and financial stability. The Financial Stability Forum was re-established with increased responsibilities and an extended membership as the Financial Stability Board. The IMF increased its efforts to assess the financial sectors of its members and of their compliance with financial standards and codes. Finally, in order to increase the IMF’s legitimacy and effectiveness, the IMF’s membership has undertaken the largest-ever overhaul of the IMF’s governance structure. This chapter takes a succinct look at the key aspects of these reform avenues and assesses whether the experience of the Global Financial Crisis has prompted states to substantially change the way they exercise their sovereign powers in monetary and financial matters.
Rumu Sarkar
- Published in print:
- 2009
- Published Online:
- February 2010
- ISBN:
- 9780195398281
- eISBN:
- 9780199866366
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195398281.001.0001
- Subject:
- Law, Human Rights and Immigration, Public International Law
This legal text provides a theoretical and practical overview of the international legal architecture between developing countries and advanced nations. The text is divided into two parts, the first ...
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This legal text provides a theoretical and practical overview of the international legal architecture between developing countries and advanced nations. The text is divided into two parts, the first part providing a theoretical overview of the philosophical implications of international development law principles. Specifically, substantive legal principles with respect to the parties, institutions, and legal norms are discussed providing the reader with a concise and innovative framework in which to analyze development issues. A more practical, “projectized approach” to the development process is also examined based on official development assistance programs of the World Bank and other institutions. Finally, the “right to development” within the international human rights discourse is critically reviewed. The second part deals with the international financial architecture and provides a critical review of international borrowing practices leading to the debt overhang and related problems. Additionally, privatization and capital market growth are examined as critical elements of encouraging broad based economic development that may lead to sustainable development overall. In brief, this legal text offers a fresh, new, and balanced legal perspective on the development process. The text has been rigorously researched and has many practical facets based on professional experience within the development field.Less
This legal text provides a theoretical and practical overview of the international legal architecture between developing countries and advanced nations. The text is divided into two parts, the first part providing a theoretical overview of the philosophical implications of international development law principles. Specifically, substantive legal principles with respect to the parties, institutions, and legal norms are discussed providing the reader with a concise and innovative framework in which to analyze development issues. A more practical, “projectized approach” to the development process is also examined based on official development assistance programs of the World Bank and other institutions. Finally, the “right to development” within the international human rights discourse is critically reviewed. The second part deals with the international financial architecture and provides a critical review of international borrowing practices leading to the debt overhang and related problems. Additionally, privatization and capital market growth are examined as critical elements of encouraging broad based economic development that may lead to sustainable development overall. In brief, this legal text offers a fresh, new, and balanced legal perspective on the development process. The text has been rigorously researched and has many practical facets based on professional experience within the development field.
Deepak Nayyar
- Published in print:
- 2002
- Published Online:
- October 2011
- ISBN:
- 9780199254033
- eISBN:
- 9780191698187
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199254033.003.0014
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter considers the institutions, with a focus on the United Nations, the Bretton Woods institutions, and the World Trade Organisation, to sketch some contours of reform and change necessary ...
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This chapter considers the institutions, with a focus on the United Nations, the Bretton Woods institutions, and the World Trade Organisation, to sketch some contours of reform and change necessary in the existing system. It then sets out the issues, of emerging significance in the contemporary world, to suggest that there are some missing institutions, which are needed. The issues selected, global macroeconomic management, international financial architecture, transnational corporations, cross-border movements of people, or international public goods and public bads, are illustrative rather than exhaustive. In addition, the chapter explores some important elements of governance, such as structures of representation or decision-making in institutions, international rules or norms, evolution or change in institutions, and the role of the nation state, which are critical for any vision about the future.Less
This chapter considers the institutions, with a focus on the United Nations, the Bretton Woods institutions, and the World Trade Organisation, to sketch some contours of reform and change necessary in the existing system. It then sets out the issues, of emerging significance in the contemporary world, to suggest that there are some missing institutions, which are needed. The issues selected, global macroeconomic management, international financial architecture, transnational corporations, cross-border movements of people, or international public goods and public bads, are illustrative rather than exhaustive. In addition, the chapter explores some important elements of governance, such as structures of representation or decision-making in institutions, international rules or norms, evolution or change in institutions, and the role of the nation state, which are critical for any vision about the future.
Guillermo A. Calvo and Ernesto Talvi
- Published in print:
- 2008
- Published Online:
- May 2008
- ISBN:
- 9780199534081
- eISBN:
- 9780191714658
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199534081.003.0008
- Subject:
- Economics and Finance, Development, Growth, and Environmental
This chapter shows that the Russian 1998 crisis had a big impact on capital flows to Emerging Market Economies (EMEs), especially in Latin America, and that the impact of the Russian shock differs ...
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This chapter shows that the Russian 1998 crisis had a big impact on capital flows to Emerging Market Economies (EMEs), especially in Latin America, and that the impact of the Russian shock differs quite markedly across EMEs. To illustrate this statement, the polar cases of Chile and Argentina are compared. While Chile exhibited a significant economic slowdown after August 1998, it did not suffer the excruciating collapse suffered by Argentina, where even the payments system came to a full stop. This difference is attributed to the fact that Chile is more open to trade than Argentina, and that it appears to suffer much less from balance-sheet currency-denomination mismatch that was rampant in Argentina before the 2002 crisis (due to large domestic liability dollarization). The chapter is essentially descriptive but is in line with and, thus, complements econometric studies like Calvo, Izquierdo, and Mejia (NBER Working Paper 10520). The final section addresses policy issues in light of the chapter's findings and conjectures.Less
This chapter shows that the Russian 1998 crisis had a big impact on capital flows to Emerging Market Economies (EMEs), especially in Latin America, and that the impact of the Russian shock differs quite markedly across EMEs. To illustrate this statement, the polar cases of Chile and Argentina are compared. While Chile exhibited a significant economic slowdown after August 1998, it did not suffer the excruciating collapse suffered by Argentina, where even the payments system came to a full stop. This difference is attributed to the fact that Chile is more open to trade than Argentina, and that it appears to suffer much less from balance-sheet currency-denomination mismatch that was rampant in Argentina before the 2002 crisis (due to large domestic liability dollarization). The chapter is essentially descriptive but is in line with and, thus, complements econometric studies like Calvo, Izquierdo, and Mejia (NBER Working Paper 10520). The final section addresses policy issues in light of the chapter's findings and conjectures.
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 ...
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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.
Morris Goldstein (ed.)
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226155401
- eISBN:
- 9780226155425
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226155425.003.0015
- Subject:
- Economics and Finance, International
This chapter evaluates several proposals for the reform of the international financial architecture using the lending policies and practices of the International Monetary Fund (IMF) as an organizing ...
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This chapter evaluates several proposals for the reform of the international financial architecture using the lending policies and practices of the International Monetary Fund (IMF) as an organizing device for discussing selected issues in the reform debate. These include proposals to increase the interest rate or reduce the maturity of IMF loans, to restrict the size of IMF rescue packages and to replace ex post macroeconomic policy conditionality of the IMF. The analysis reveals that proposals for addressing currency mismatching problems appear to be either too costly or too drastic. This chapter suggests a combination of managed floating and active development of hedging mechanisms.Less
This chapter evaluates several proposals for the reform of the international financial architecture using the lending policies and practices of the International Monetary Fund (IMF) as an organizing device for discussing selected issues in the reform debate. These include proposals to increase the interest rate or reduce the maturity of IMF loans, to restrict the size of IMF rescue packages and to replace ex post macroeconomic policy conditionality of the IMF. The analysis reveals that proposals for addressing currency mismatching problems appear to be either too costly or too drastic. This chapter suggests a combination of managed floating and active development of hedging mechanisms.
Abraham L. Newman and Elliot Posner
- Published in print:
- 2018
- Published Online:
- April 2018
- ISBN:
- 9780198818380
- eISBN:
- 9780191859526
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198818380.003.0003
- Subject:
- Political Science, Democratization
Chapter 3 describes the international financial regulatory architecture, providing necessary background for the substantive studies that follow. It gives special attention to the architecture’s two ...
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Chapter 3 describes the international financial regulatory architecture, providing necessary background for the substantive studies that follow. It gives special attention to the architecture’s two defining aspects: the soft law character of the rules it produces and the fragmentation of rule-making by subsectors. A matrix of forums develops advisory prescriptions for specific financial policy areas. The chapter traces the architecture’s origins and evolution, including how policy-makers and standard-setting organizations dealt with the breakdown of traditional boundaries between markets and subsectors. It provides background on the book’s featured causal variable: international soft law. It also offers an original explanation for the architecture’s key features. The chapter highlights the prominent role of domestic institutional arrangements within the United States and other jurisdictions with important markets for the early development of soft law-creating organizations and establishes the role of contingency, sequence, and endogeneity (with reference to domestic institutions) in the architecture’s evolution.Less
Chapter 3 describes the international financial regulatory architecture, providing necessary background for the substantive studies that follow. It gives special attention to the architecture’s two defining aspects: the soft law character of the rules it produces and the fragmentation of rule-making by subsectors. A matrix of forums develops advisory prescriptions for specific financial policy areas. The chapter traces the architecture’s origins and evolution, including how policy-makers and standard-setting organizations dealt with the breakdown of traditional boundaries between markets and subsectors. It provides background on the book’s featured causal variable: international soft law. It also offers an original explanation for the architecture’s key features. The chapter highlights the prominent role of domestic institutional arrangements within the United States and other jurisdictions with important markets for the early development of soft law-creating organizations and establishes the role of contingency, sequence, and endogeneity (with reference to domestic institutions) in the architecture’s evolution.
Aaron Major
- Published in print:
- 2014
- Published Online:
- September 2014
- ISBN:
- 9780804788342
- eISBN:
- 9780804790734
- Item type:
- chapter
- Publisher:
- Stanford University Press
- DOI:
- 10.11126/stanford/9780804788342.003.0008
- Subject:
- Sociology, Economic Sociology
This chapter tells the story of international institutional from the 1970s forward. While the existing scholarship highlights processes of financial market liberalization in this period, this chapter ...
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This chapter tells the story of international institutional from the 1970s forward. While the existing scholarship highlights processes of financial market liberalization in this period, this chapter highlights three developments in the evolution of the international monetary system that have elevated monetary authority's role in managing the global economy: (1) the assault on inflation in the 1970s and the spread of inflation targeting regimes, (2) the construction of a bank-centered regulatory system for capital, (3) and the performance of “lender of last resort” functions in times of crisis.Less
This chapter tells the story of international institutional from the 1970s forward. While the existing scholarship highlights processes of financial market liberalization in this period, this chapter highlights three developments in the evolution of the international monetary system that have elevated monetary authority's role in managing the global economy: (1) the assault on inflation in the 1970s and the spread of inflation targeting regimes, (2) the construction of a bank-centered regulatory system for capital, (3) and the performance of “lender of last resort” functions in times of crisis.
STIJN CLAESSENS
- Published in print:
- 2012
- Published Online:
- May 2013
- ISBN:
- 9780199754656
- eISBN:
- 9780199979462
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199754656.003.0008
- Subject:
- Economics and Finance, Financial Economics, International
Financial intermediation and financial services industries have undergone many changes in the past two decades due to deregulation, technological advances, and globalization. The recent financial ...
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Financial intermediation and financial services industries have undergone many changes in the past two decades due to deregulation, technological advances, and globalization. The recent financial crisis is forcing the industry through additional sharp adjustments. The framework for regulating finance has seen many changes as well and the crisis has led to many new regulations and proposals for other changes. The objective of this chapter is to review thinking on what kind of regulatory framework is necessary to develop a financial sector that is efficient and provides proper access to households and firms, while maintaining its stability. The chapter outlines four areas of current debate: (1) the special role of banks, (2) competition policy, (3) consumer protection, and (4) the costs of regulation and harmonization of rules across products, within markets, and globally. The chapter concludes with some areas where more research would be useful.Less
Financial intermediation and financial services industries have undergone many changes in the past two decades due to deregulation, technological advances, and globalization. The recent financial crisis is forcing the industry through additional sharp adjustments. The framework for regulating finance has seen many changes as well and the crisis has led to many new regulations and proposals for other changes. The objective of this chapter is to review thinking on what kind of regulatory framework is necessary to develop a financial sector that is efficient and provides proper access to households and firms, while maintaining its stability. The chapter outlines four areas of current debate: (1) the special role of banks, (2) competition policy, (3) consumer protection, and (4) the costs of regulation and harmonization of rules across products, within markets, and globally. The chapter concludes with some areas where more research would be useful.
Olivier Jeanne and Charles Wyplosz (eds)
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226155401
- eISBN:
- 9780226155425
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226155425.003.0006
- Subject:
- Economics and Finance, International
This chapter examines whether an international lender of last resort (ILOLR) would be a useful addition to the international financial architecture. It analyzes whether an ILOLR can function ...
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This chapter examines whether an international lender of last resort (ILOLR) would be a useful addition to the international financial architecture. It analyzes whether an ILOLR can function effectively as a fund with limited and predetermined resources using a model of an emerging economy vulnerable to international liquidity crises. The findings reveal that required size of the ILOLR depends on how its resources are used by the domestic authorities. This chapter explains that if the LOLR backs a guarantee of the foreign currency liabilities of domestic banks, its resources do not need to be larger than the liquidity gap in the domestic banking sector.Less
This chapter examines whether an international lender of last resort (ILOLR) would be a useful addition to the international financial architecture. It analyzes whether an ILOLR can function effectively as a fund with limited and predetermined resources using a model of an emerging economy vulnerable to international liquidity crises. The findings reveal that required size of the ILOLR depends on how its resources are used by the domestic authorities. This chapter explains that if the LOLR backs a guarantee of the foreign currency liabilities of domestic banks, its resources do not need to be larger than the liquidity gap in the domestic banking sector.
Sebastian Edwards, Domingo F. Cavallo, Arminio Fraga, and Jacob A. Frenkel
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226241098
- eISBN:
- 9780226241104
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226241104.003.0002
- Subject:
- Economics and Finance, International
This chapter analyzes the relationship between exchange rate regimes, capital flows, and currency crises in emerging economies in the context of the implementation of a new financial architecture. It ...
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This chapter analyzes the relationship between exchange rate regimes, capital flows, and currency crises in emerging economies in the context of the implementation of a new financial architecture. It evaluates some proposals for reform of the international financial architecture that focus on exchange rate regimes and capital mobility. This chapter also examines the effectiveness of capital controls as a crisis prevention device and evaluates whether emerging markets can adapt to super-fixed or freely floating exchange rate system.Less
This chapter analyzes the relationship between exchange rate regimes, capital flows, and currency crises in emerging economies in the context of the implementation of a new financial architecture. It evaluates some proposals for reform of the international financial architecture that focus on exchange rate regimes and capital mobility. This chapter also examines the effectiveness of capital controls as a crisis prevention device and evaluates whether emerging markets can adapt to super-fixed or freely floating exchange rate system.
Matthew Bishop, T. Britton Harris, John Lipsky, Allan Meltzer, and Guillermo A. Calvo
- Published in print:
- 2003
- Published Online:
- February 2013
- ISBN:
- 9780226032146
- eISBN:
- 9780226032153
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226032153.003.0009
- Subject:
- Economics and Finance, International
This chapter presents the text of the roundtable discussion of the report of the International Financial Institutions Advisory Commission (IFIAC). The panelists all agree that capital controls are ...
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This chapter presents the text of the roundtable discussion of the report of the International Financial Institutions Advisory Commission (IFIAC). The panelists all agree that capital controls are not an answer to the financial crisis problem, except in very extreme circumstances and under conditions of credibility about their transitory nature. There is also a consensus that hybrid or intermediate exchange rate regimes should not be adopted, a sound domestic financial structure is of paramount importance and the International Monetary Fund (IMF) has a role to play the improvement of the international financial architecture.Less
This chapter presents the text of the roundtable discussion of the report of the International Financial Institutions Advisory Commission (IFIAC). The panelists all agree that capital controls are not an answer to the financial crisis problem, except in very extreme circumstances and under conditions of credibility about their transitory nature. There is also a consensus that hybrid or intermediate exchange rate regimes should not be adopted, a sound domestic financial structure is of paramount importance and the International Monetary Fund (IMF) has a role to play the improvement of the international financial architecture.
Kunibert Raffer
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780231179263
- eISBN:
- 9780231542029
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231179263.003.0016
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Chapter 15: The shortcomings of the present international financial architecture and the limits of the contractual approach were forcefully recalled recently. Starting from the UN’s demand for ...
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Chapter 15: The shortcomings of the present international financial architecture and the limits of the contractual approach were forcefully recalled recently. Starting from the UN’s demand for sovereign insolvency, this paper analyzes which elements are indispensable for any model to be rightly called insolvency: equality of parties instead of creditor diktat, debtor protection, fairness and a solution in the best interest of all creditors. This is important as private creditors have increasingly had to suffer unnecessary losses caused by the public sector. For countries, the problem of sovereignty must be solved. A model is presented that fulfills all these requirements, the Raffer Proposal. The paper concludes by showing that there has been progress since the 1980s, although at snail speed.Less
Chapter 15: The shortcomings of the present international financial architecture and the limits of the contractual approach were forcefully recalled recently. Starting from the UN’s demand for sovereign insolvency, this paper analyzes which elements are indispensable for any model to be rightly called insolvency: equality of parties instead of creditor diktat, debtor protection, fairness and a solution in the best interest of all creditors. This is important as private creditors have increasingly had to suffer unnecessary losses caused by the public sector. For countries, the problem of sovereignty must be solved. A model is presented that fulfills all these requirements, the Raffer Proposal. The paper concludes by showing that there has been progress since the 1980s, although at snail speed.
Abraham L. Newman and Elliot Posner
- Published in print:
- 2018
- Published Online:
- April 2018
- ISBN:
- 9780198818380
- eISBN:
- 9780191859526
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198818380.001.0001
- Subject:
- Political Science, Democratization
From home mortgages to iPhones, basic elements of our daily lives depend on international markets. The astonishing complexity of these exchanges may seem ungoverned. Yet the global economy remains ...
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From home mortgages to iPhones, basic elements of our daily lives depend on international markets. The astonishing complexity of these exchanges may seem ungoverned. Yet the global economy remains deeply bound by rules. Far from the staid world of treaties and state-to-state diplomacy, governance increasingly relies on a different class of international market regulation—soft law—composed of voluntary standards, best practices, and recommended guidance created by a motley assortment of organizations. Voluntary Disruptions argues that international soft law is deeply political, shaping the winners and losers of globalization. Some observers focus on soft law’s potential to solve problems and coordinate market participants. Voluntary Disruptions widens the discussion, shifting attention to the ways soft law provides new political resources to some groups while not to others and alters the sites of contestation and the actors who participate in them. Highlighting two mechanisms—legitimacy claims and arena expansion—the book explains how soft law, typically viewed as limited by its voluntary nature, disrupts and transforms the politics of economic governance. Using financial regulation as its laboratory, Voluntary Disruptions explains the remarkable pre-crisis alignment of US and European approaches to governing markets, the rise and prominence of transnational industry associations in the 1990s and 2000s, and the ambivalence of US reforms toward international market cooperation in the wake of the 2008 financial crisis. Rethinking scholarly and policy approaches to international soft law, Voluntary Disruptions answers enduring and pressing questions about global finance, international relations, and power.Less
From home mortgages to iPhones, basic elements of our daily lives depend on international markets. The astonishing complexity of these exchanges may seem ungoverned. Yet the global economy remains deeply bound by rules. Far from the staid world of treaties and state-to-state diplomacy, governance increasingly relies on a different class of international market regulation—soft law—composed of voluntary standards, best practices, and recommended guidance created by a motley assortment of organizations. Voluntary Disruptions argues that international soft law is deeply political, shaping the winners and losers of globalization. Some observers focus on soft law’s potential to solve problems and coordinate market participants. Voluntary Disruptions widens the discussion, shifting attention to the ways soft law provides new political resources to some groups while not to others and alters the sites of contestation and the actors who participate in them. Highlighting two mechanisms—legitimacy claims and arena expansion—the book explains how soft law, typically viewed as limited by its voluntary nature, disrupts and transforms the politics of economic governance. Using financial regulation as its laboratory, Voluntary Disruptions explains the remarkable pre-crisis alignment of US and European approaches to governing markets, the rise and prominence of transnational industry associations in the 1990s and 2000s, and the ambivalence of US reforms toward international market cooperation in the wake of the 2008 financial crisis. Rethinking scholarly and policy approaches to international soft law, Voluntary Disruptions answers enduring and pressing questions about global finance, international relations, and power.
