"... global financial regulation is neither feasible, nor prudent, nor desirable. What finance needs instead are some sensible traffic rules that will allow nations (and in some cases regions) to implement their own regulations while preventing adverse spillovers.... "great
the nation state as autonomous trade and finance power
"a new financial order can be constructed on the back of a minimal set of international guidelines."
exactly ..no hegemon
"..The new arrangements would certainly involve an improved IMF with better representation and increased resources. "
"It might also require an international financial charter with limited aims, focused on financial transparency, consultation among national regulators, and limits on jurisdictions (such as offshore centres) that export financial instability. "
But
"the responsibility for regulating leverage, setting capital standards, and supervising financial markets would rest squarely at the national level..."
"This seems to me to be dangerously wrongheaded. "
brad furlong rejoins:
some absurd british imperial history follows..we'll skip it
except to say its a lullaby themed " rule britannia "
"monetary policy is and always has been about supporting asset prices at a level that allows firms that ought to be expanding to obtain finance and expand profitably...
the central bank has done this by, whenever it needs to, taking long-duration and risky assets into its own portfolio--and thus off of the stock that must be held by the private sector whose risk tolerance has collapsed."
" Given that there are going to be sudden shocks to risk and duration tolerance on the part of global investors, we need a global institution to provide support for asset prices in an emergency: a global lender of last resort."
global investors ?
how might they differ from imperial investors ?
"That lender of last resort needs two things if it is to function."
" First, it needs to be able to "print money"--to have its own liabilities be and be perceived to be the safest assets in the world so that when it borrows it calms markets by giving them more of the high-quality short-duration low-risk paper for which they suddenly have such a great craving."
" Second, it needs to know what it is buying--to have sufficient regulatory oversight and control over global finance to be able to limit the growth of potentially toxic assets beforehand and then to understand what prices it should offer when it does decide that it is time to support the market."
then comes touching presumptions
" ..my old teacher Charlie Kindleberger taught me (or, rather, taught Barry Eichengreen, who in turn taught me)'
go ahead savor that a while i can wait ....
ahemmmm
enter the global hegemon paradigm
" when the global financial system has had a hegemonic lender-of-last-resort with the power and the will to exercise this function, things have gone relatively well. And when the possible candidates for the role have lacked either the power or the will, things have gone relatively badly."
" In the future the world is likely to become a more complicated place without a single hegemonic and dominant public financial institution. To my mind, this creates grave dangers for the next quarter century. But Dani does not see them."
i might suggest hegemons tend to be single states
in the present context its uncle sam or its an inter regnum like 1919 to 1946
