In 2007-2008 the global financial and economic system was in turmoil. This volume focuses on how the global financial architecture was redesigned following the financial crash of 2008. Its central claim is that the reforms constituted a paradigm shift, a move from the dominance of market authority to the re-assertion of state authority over financial markets and actors.
The book underscores that the cycle of boom and bust, of crisis response, reform and eventual relapse are not only economic but also conceptual and ideological. Ideas matter in the political and economic calculus of policy making. Economies are underpinned by and linked to ideological narrative, a prevailing policy consensus that places limits on policy actions and options and constitutes a dominant worldview or paradigm. To become real, to be lasting, to impact actual policy choices and market actor decisions, a re-regulatory paradigm shift cannot just be conceptual or ideological. It must also be present in the institutional constructs and policy decisions that flow from the ideological regulatory shift. To gauge the fluctuating strength of the paradigm shift the book addresses the G20 summit process, the creation of the FSB, the policy output of the new forums, for signs of permanency, strength, and possible effectiveness.
This work presents important new material on the financial crisis and the regulatory response to it, which will be valuable for researchers, teachers and students alike.
Table of Contents
Chapter 1 – Crises and paradigm shift Chapter 2 – The creation of the G20 leaders’ forum Chapter 3 – The 2009 G20 summits: the apogee of reformist zeal Chapter 4 – The emergence of dissension within the G20 Chapter 5 – The Financial Stability Board: Its creation, structure, and processes Chapter 6 – Making the paradigm real: the FSB’s key policy outcomes Chapter 7 – Watching a paradigm shift evolve
Stuart Mackintosh is the Executive Director of the Group of Thirty, an international financial think tank, composed of the leading central bankers, financial leaders and academic economists from across the globe.
'A remarkable book, helping to put all the "Sturm und Drang" surrounding the financial crisis in perspective.’ - Paul A. Volcker, Former Chairman of the U.S. Federal Reserve System
'This book provides masterly insights into the transformation, hitherto scarcely noticed, of the whole approach of the state to financial markets. It draws on unparalleled access to the key players in the response to the crisis and distils their views on the fundamental changes that have taken place. As well as illuminating the past it also offers some hints of what might happen next which are necessary reading for anyone who needs to know how financial regulation, politics and the economy interact' - David W. Green, former central banker, bail-out expert, and co-author of 'Global Financial Regulation: The Essential Guide'