Tuesday, November 18, 2008
Bretton Woods II and International finacial Regulation
Martin Wolf argues that agreeing on a new Bretton Woods is vital. Indeed, "The Great Depression of the 1930s was accompanied – and aggravated – by failures of economic co-operation, disintegration of the global economy and resurgent nationalism"; and cooperation is necessary now. Indeed Carmen Reinhart and Kenneth Rogoff argue that political interference played a major role in the curretn financial crisis and that "the need for greater regulatory independence is a compelling reason for establishing an international financial regulator."