Global Finance at Risk : The Case for International Regulation

In Global Finance at Risk , two acclaimed economists proposea bold and necessary solution to the financial crises that threatenus all: a World Financial Authority with powers to establishbest-practice financial regulation and risk management everywhere. The expansion of finance in industrialized economies, includingnineteenth-century Britain and the United States, saw exactly thesame kind of turbulence now afflicting Asia, Russia and LatinAmerica. Then, the solution was to establish national banking andsecurities regulators, deposit insurance and lenders of lastresort. But in our increasingly globalized world, the savingsaccount you open at your local bank can be based on bad debt fromanywhere in the world, including places outside the jurisdiction ofthose national agencies. And when banks fail, it is not just theiraccount-holders who suffer, but all of us. This is why, argue JohnEatwell and Lance Taylor in this timely and urgent book, effectiveregulation of the international financial system is crucial for theeconomic health of all nations. Global Finance at Risk presents a compelling case for theinternational regulation of world financial systems. Written in aclear and accessible style and addressing one of the most criticalissues in the world today, this is a book which deserves to bewidely read and discussed.