Abstract

http://ssrn.com/abstract=1980010
 


 



From Crisis to Crisis: The Global Financial System and Regulatory Failure


Ross P. Buckley


University of New South Wales (UNSW) - Faculty of Law; Centre for International Finance and Regulation (CIFR)

Douglas W. Arner


University of Hong Kong - Faculty of Law; Centre for International Finance and Regulation (CIFR)

September 1, 2011

Kluwer Law International, 2011
University of Hong Kong Faculty of Law Research Paper No. 2012/002

Abstract:     
The global financial system has proven increasingly unstable and crisis-prone since the early 1980s. The system has failed to serve either creditors or debtors well. This has been reinforced by the global financial crisis of 2008, where we have seen systemic weaknesses bring rich countries to the brink of bankruptcy and visit appalling suffering on the poorest citizens of poor countries. Yet the regulatory responses to this crisis have involved little thinking from outside the box in which the crisis was delivered to the world.

This book presents a powerful indictment of this regulatory failure and calls for greatly increased attention to international financial law and analyses new regulatory measures with the potential to make a new recognition of the principles that ought to underlie it.

Using a historical approach that compares the various financial crises of the past three decades, the authors clearly show how misconceived economic policy responses have paved the way for each next ‘crash’. Among the numerous topics that arise in the course of this revealing analysis are the following: overvalued exchange rates; excess liquidity in rich countries; premature liberalization of local financial markets; capital controls; derivatives markets; accounting standards; credit ratings and the conflicts in the role of credit rating agencies; investor protection arrangements; insurance companies; and payment, clearing and settlement activities.

The authors offer detailed commentary on: the role of multilateral development banks, the IMF and the WTO in responding to crises; the role of the Basel Accords, the Financial Stability Forum and Board, and the responses of the European Commission, the US, and the G20 to the most recent crisis.

The book concludes by exploring systemic game-changing reforms such as bank levies, financial activities taxes and financial transaction taxes, and a global sovereign bankruptcy regime; as well as measures to remove the currency mismatches from the balance sheets of developing countries.

Number of Pages in PDF File: 15

Keywords: financial crisis, international monetary fund, group of 20, financial stability board, financial transaction tax, sovereign debt, financial regulation

Accepted Paper Series


Download This Paper

Date posted: January 5, 2012 ; Last revised: February 3, 2012

Suggested Citation

Buckley, Ross P. and Arner, Douglas W., From Crisis to Crisis: The Global Financial System and Regulatory Failure (September 1, 2011). Kluwer Law International, 2011; University of Hong Kong Faculty of Law Research Paper No. 2012/002. Available at SSRN: http://ssrn.com/abstract=1980010

Contact Information

Ross P. Buckley
University of New South Wales (UNSW) - Faculty of Law ( email )
Kensington, New South Wales 2052
Australia
Centre for International Finance and Regulation (CIFR) ( email )
Level 7, UNSW CBD Campus
1 O'Connell Street
Sydney, NSW 2000
Australia

Douglas W. Arner (Contact Author)
University of Hong Kong - Faculty of Law ( email )
Pokfulam Road
Hong Kong, Hong Kong
China
HOME PAGE: http://hub.hku.hk/rp/rp01237

Centre for International Finance and Regulation (CIFR) ( email )
Level 7, UNSW CBD Campus
1 O'Connell Street
Sydney, NSW 2000
Australia

Feedback to SSRN


Paper statistics
Abstract Views: 3,172
Downloads: 940
Download Rank: 12,139

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.313 seconds