Global Financial Architecture – Article by Charles W. Calomiris

Tuesday, April 29th, 2008

Charles Calomiris article on a New Global Financial Architecture from October 1998 is an interesting document, outlining the criticism of the International Financial Institutions (IFIs). He starts with an interesting claim: Economics normally provides rather dismal news, emphasizing tradeoffs among objectives and hard choices. In the case of redesigning the global financial ...

Summary of the recommendations of the Meltzer-Report

Sunday, April 27th, 2008

To assess the evolution of the Financial Architecture after the Asian Crisis, the Meltzer Report provides a good gauge for the critique of the USA and other G7 countries towards the International Financial Institution. The report is named after Allan H. Meltzer, an economist and prominent critic of the Bretton-Woods-Institutions. In ...

Intergovernmentalism in Financial Regulation

Tuesday, April 22nd, 2008

Puzzling Complexity The global financial architecture is very complex. Despite increasing liberalization of financial markets, increased system risk and integration of the economies through the financial markets in the last 30 years, there is no single World Financial Authority regulating the financial markets, as Alexander, Eatwell and Dhumale have suggested. Instead what ...

Global Financial Governance – Definitions by Alexander, Eatwell and Dhumale

Monday, April 14th, 2008

Alexander, Eatwell and Dhumale make this causal explanation for the need of Global Financial Governance (p. 14): In the post-Bretton-Woods-Era, banks and financial instutions have adopted innovative financial instruments to diversify earnings and to hedge against credit and market risk. [Is this really the case? Wasn't it rather to hedge primarily ...