Global Governance of Financial SystemsThe International Regulation of Systemic Risk

Global Governance of Financial SystemsThe International Regulation of Systemic Risk

Kern Alexander, Rahul Dhumale, and John Eatwell

Print publication date: 2007

ISBN: 9780195166989

Publisher: Oxford University Press

Abstract

This book sets forth the economic rationale for international financial regulation and what role, if any, international regulation can play in effectively managing systemic risk while providing accountability to all affected nations. The book suggests that a particular type of global governance structure is necessary to have more efficient regulation of the international financial systems. The book defines global governance of financial systems to involve three main principles: effectiveness in devising efficient regulatory standards and rules; accountability in decision-making structure and chain of command; and legitimacy, meaning that those subject to international regulatory standards have participated in some meaningful way in their development.