Dani Rodrik starts a debate against global financial regulation:
"Mr Rodrik identifies a number of problems with the idea of global regulation. Would the major economic powers of the world surrender their financial sovereignty to international regulators? No, he says. But if they were willing, could the nations of the world agree on the right set of regulations? They may not, he argues, pointing to the Basel process. Is there even a one-siz-fits-all solution? No, he concludes, citing the fundamental problem with the idea of global regulation."
Check out Richard Baldwin's post for a useful roundup of proposals for reform. I also like this little tidbit from Baldwin as well:
"My friends who are experts in financial regulation tell me that the whole Basle II exercise was subject to ‘regulatory capture’ by the big international banks, so I take Buiter’s point seriously."
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I have a post : "Group of Thirty (G30) - Financial Reform: a framework of financial stability" on my blog. Many prominent central bankers have endorsed the framework.
ReplyDeleteAlso saw a OECD report claiming Basel II is one of the culprits on this financial crisis.
Please refer to my blog, I put it under "US investment". Hope you can tell what you think. Thx.
http://wy-on-investment.blogspot.com/search/label/US%20investment
The Group 30 has actually come out with a framework on global regulation.