International Law in Financial Regulation and Monetary Affairs (International Economic Law Series)

The early twenty-first century has seen a conspicuous absence of formal international law concerning money and finance. This book argues that this lack of formal international regulation was a significant contributing factor to the global financial crisis that began in 2007. It focuses on this lack of global substantive principles and 'hard law' rules in the field of financial regulation and monetary affairs, and analyses the emerging framework within international law that aims to govern financial institutions and markets. The global financial crisis has demonstrated the essential need for financial and monetary regulatory reform, and for the establishment of appropriate mechanisms for the settlement of financial disputes and for the regulation of cross-border financial institutions. This book therefore presents the foundations of solutions that could fill these critical gaps in international financial law. It addresses cross-border issues, financial regulation, and provides detailed analyses of monetary policies and regulation. This book is an updated collection of papers first published in the Special Edition of the __Journal of International Economic Law__ on 'The Quest for International Law in Financial Regulation and Monetary Affairs' (Volume 12, Number 3, September 2010), which also show that the regulatory hands-off approach was not replicated in other areas of international economic law. International trade regulation witnessed an increased number of international rules and the reinforcement of a rule-oriented, if not rule-based, approach. Judicial dispute settlement and retaliation, exclusively based upon international ruling and authorization, was reinforced. Given the importance of trade regulation and WTO law, which has an established institutional and legal framework, the book therefore provides a much-needed comparative approach. 11. Addressing Government Failure Through International Financial Law / Steve Charnovitz -- 12. Reducing Systemic Risk Through The Reform Of Capital Regulation / Hal S. Scott -- 13. Role Of Transparency In Financial Regulation / Christine Kaufmann, Rolf H. Weber -- 14. Global Securities Regulation After The Financial Crisis / Donald C. Langevoort -- 15. What Role For Non-discrimination And Prudential Standards In International Financial Law? / Thomas Cottier, Markus Krajewski -- 16. Financial Services Trade After The Crisis : Policy And Legal Conjectures / Panagiotis Delimatsis, Pierre Sauve -- 17. Wto Subsidies Discipline During And After The Crisis / Gary N. Horlick, Peggy A. Clarke -- 18. Role Of Competition And State Aid Policy In Financial And Monetary Law / Philip Marsden, Ioannis Kokkoris -- 19. International Regulatory Reform And Financial Taxes / Kern Alexander -- 20. Role Of International Law In Monetary Affairs / Ernst Baltensperger, Thomas Cottier -- 21. Financial Stability And Monetary Policy : Need For International Surveillance / Gary Hufbauer, Daniel Danxia Xie -- 22. Enhancing The Imf's Regulatory Authority / Sean Hagan. 1. Crisis Of 2007-09 ; Nature, Causes, And Reactions / Rosa M. Lastra, Geoffrey Wood -- 2. Systemic Regulation Of Global Trade And Finance : A Tale Of Two Systems / R. Michael Gadbaw -- 3. International Monetary System : A Look Back Over Seven Decades / Andreas F. Lowenfeld -- 4. Towards A New Architecture For Financial Stability : Seven Principles / Luis Garicano, Rosa M. Lastra -- 5. Why Soft Law Dominates International Finance -- And Not Trade / Chris Brummer -- 6. 'santiago Principles' For Sovereign Wealth Funds : A Case Study On International Financial Standard-setting Processes / Joseph J. Norton -- 7. Role And Prospects Of International Law In Financial Regulation And Supervision / Christian Tietje, Matthias Lehmann -- 8. Multilayered Governance In International Financial Regulation And Supervision / Rolf H. Weber -- 9. Border Problems / Charles A.e. Goodhart, Rosa M. Lastra -- 10. International Law Of Financial Crisis : Spillovers, Subsidiarity, Fragmentation And Cooperation / Joel P. Trachtman -- Edited By Thomas Cottier, John H. Jackson, And Rosa M. Lastra. Updated Papers Originally Presented In Sept. 2010 In A Special Issue Of The Journal Of International Economic Law. Includes Bibliography (p. [427]-438) And Index. Cover 1 Contents 8 List of Abbreviations 11 List of Contributors 14 Introduction 16 I. THE CRISIS OF 2007–2009: NATURE, CAUSES, AND REACTIONS 22 1. The Crisis of 2007–09: Nature, Causes, and Reactions 24 II. ARCHITECTURE AND CONCEPTUAL ISSUES 44 2. Systemic Regulation of Global Trade and Finance: A Tale of Two Systems 46 3. The International Monetary System: A Look Back Over Seven Decades 67 4. Towards a New Architecture for Financial Stability: Seven Principles 87 5. Why Soft Law Dominates International Finance—and not Trade 110 6. The ‘Santiago Principles’ for Sovereign Wealth Funds: A Case Study on International Financial Standard-Setting Processes 129 III. FINANCIAL MARKET REGULATION 146 7. The Role and Prospects of International Law in Financial Regulation and Supervision 148 8. Multilayered Governance in International Financial Regulation and Supervision 166 9. Border Problems 186 10. The International Law of Financial Crisis: Spillovers, Subsidiarity, Fragmentation and Cooperation 198 11. Addressing Government Failure through International Financial Law 220 12. Reducing Systemic Risk through the Reform of Capital Regulation 237 13. The Role of Transparency in Financial Regulation 252 14. Global Securities Regulation after the Financial Crisis 269 IV. TRADE, COMPETITION, AND TAXRELATED ASPECTS 284 15. What Role for Non-Discrimination and Prudential Standards in International Financial Law? 286 16. Financial Services Trade After the Crisis: Policy and Legal 303 17. WTO Subsidies Discipline During and After the Crisis 322 18. The Role of Competition and State Aid Policy in Financial and Monetary Law 336 19. International Regulatory Reform and Financial Taxes 352 V. MONETARY REGULATION 370 20. The Role of International Law in Monetary Affairs 372 21. Financial Stability and Monetary Policy: Need for International Surveillance 397 22. Enhancing the IMF’s Regulatory Authority 411 VI. CONCLUSIONS 424 Conclusions 426 Bibliography 442 Index 454 A 454 B 454 C 455 D 456 E 457 F 458 G 460 H 461 I 461 J 463 K 463 L 463 M 463 N 465 O 465 P 465 Q 466 R 466 S 467 T 468 U 469 V 469 W 469 X 470 Z 470 Analysing the emerging international legal framework governing financial institutions and markets, including monetary policies and monetary regulation, this book addresses the cross border issues that arise within this area. It highlights the lack of formal international law present, and shows how this contributed to the global financial crisis.