Promoting Financial Stability in Emerging-Market Countries: The Soft Law Approach and Beyond1
This paper reviews the analytical foundations and the content of current efforts to extend market-augmenting financial regulation to emerging market countries. It is argued that the ‘soft law’ approach being pursued by the official community constitutes an attempt to reconcile the need for cross-country harmonization with the equally pressing need for embedding the banking safety-net into the domestic institutional and legal environment. For this reason, its limitations notwithstanding, the current strategy seems preferable to alternative ones, such as centralizing supervisory authority at the world level or tying IMF lending to a limited set of structural criteria. However, the strategy could be significantly strengthened by: actively promoting foreign entry in the domestic financial sector; giving more emphasis to official incentives, such as market-access policies and “name and shame” methods; building a “hard roof”, in the form of a declaration of principles enshrining the twin notions that capital mobility is a desirable feature of the international environment and that financial stability is to be regarded as an international public good. Comparative Economic Studies (2002) 44, 125–167; doi:10.1057/ces.2002.12
Year of publication: |
2002
|
---|---|
Authors: | Giannini, Curzio |
Published in: |
Comparative Economic Studies. - Palgrave Macmillan, ISSN 0888-7233. - Vol. 44.2002, 2-3, p. 125-167
|
Publisher: |
Palgrave Macmillan |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Giannini, Curzio, (2002)
-
Inflation, Credibility, and the Role of the International Monetary Fund
Giannini, Curzio, (1998)
-
Giannini, Curzio, (1999)
- More ...