Government Intervention in Globalization Regulation, Trade and Devaluation Wars

by Peláez, Carlos M.

• ISBN13: 9780230222212
• ISBN10: 0230222218
• Format: Hardcover
• Copyright: 2008-12-15
• Publisher: Palgrave Macmillan

Summary

This book provides institutional information and uses analytical tools to explains why governments should intervene in economies affected by globalization. With analysis of current country experiences and issues, this book is an essential read for all interested in the demands on economic policy in globalized age.

Author Biography

Carlos M. Peláez received a PhD and BS, Phi Beta Kappa, from Columbia University. He has published books, essays and articles worldwide, including International Financial Architecture and The Global Recession Risk. He was Director of the Banco Chase and of the Rio de Janeiro Association of Banks and vice President of Chase Manhattan Bank. He is Managing Director of CMP Associates.

Table of Contents

List of Illustrations	p. xi
List of Abbreviations	p. xiii
Acknowledgments	p. xvi
Introduction, Scope and Content	p. 1
The World Economy, Prosperity and Conflicts	p. 13
Introduction	p. 13
The world economy	p. 13
The causes of prosperity	p. 14
Institutions	p. 17
Historical reversals of globalization	p. 18
The human face	p. 19
Taxation	p. 21
Financial globalization	p. 22
Economic development	p. 23
Summary	p. 24
International Official Institutions	p. 25
Introduction	p. 25
The G7 and the G10	p. 26
The international financial institutions	p. 26
The IMF	p. 27
The World Bank	p. 28
The BIS	p. 29
The multilateral development banks	p. 30
The WTO	p. 31
The central banks	p. 31
The Federal Reserve System and US regulators and supervisors	p. 33
The European Central Bank	p. 35
The Bank of Japan	p. 36
The Bank of England	p. 36
The UN	p. 37
Summary	p. 38
Open market operations in practice	p. 38
Banks and Capital Markets	p. 40
Introduction	p. 40
Commercial banks	p. 40
Investment banks	p. 44
Governance and exit	p. 46
M&A	p. 47
Leveraged buyouts	p. 48
Hedge funds	p. 49
Private equity	p. 50
Summary	p. 52
Security prices, yields and hedges	p. 52
Risk Management and World Trade, Investment and Finance	p. 57
Introduction	p. 57
Risk management	p. 57
Value at risk	p. 61
Credit-risk models	p. 61
Stress tests	p. 63
World trade	p. 64
Financial flows and FX	p. 66
FDI, equities, securities and derivatives	p. 68
Summary	p. 70
Financial risk	p. 70
The Theory of the State	p. 75
Introduction	p. 75
The first best of efficiency and satisfaction	p. 75
The theory of second best	p. 77
The public interest view	p. 78
Public goods	p. 79
Imperfect information	p. 79
Government failure	p. 80
Transaction costs and property rights	p. 81
The new institutional economics	p. 83
The economic theory of regulation	p. 84
Rent-seeking and public choice	p. 85
The view of disclosure and regulation	p. 86
Applied welfare economics	p. 87
Summary	p. 87
International Trade of Goods and Services	p. 89
Introduction	p. 89
The gains from trade	p. 89
Distortions	p. 92
Trade openness	p. 93
The political economy of trade	p. 93
Antidumping and safeguards	p. 95
Trade and employment	p. 97
Trade and wages	p. 98
Offshore employment	p. 101
Summary	p. 101
Trade Agreements	p. 103
Introduction	p. 103
Characteristics of trade agreements	p. 103
Economic wellbeing and trade agreements	p. 105
The European Union	p. 106
NAFTA	p. 109
APEC	p. 110
ASEAN	p. 111
MERCOSUR	p. 113
OPEC	p. 114
Summary	p. 115
Poverty, the Environment and Climate Change	p. 116
Introduction	p. 116
Poverty and inequality	p. 116
Regional, international and global public goods	p. 120
The environment	p. 121
Climate change	p. 123
The HM Treasury review	p. 123
The UN IPCC	p. 124
The economics of climate change	p. 125
Summary	p. 126
Financial Globalization	p. 128
Introduction	p. 128
The role of finance in growth and efficiency	p. 128
Financial repression and restraint	p. 131
Financial globalization	p. 134
Capital account liberalization	p. 137
Financial crises	p. 141
Summary	p. 144
International Economic Law	p. 145
Introduction	p. 145
Soft law, standards and codes	p. 145
Standards and codes	p. 146
Soft law	p. 146
Basel II	p. 150
Self-regulatory organizations, the SEC and the FSA	p. 154
SOX	p. 158
US competitiveness in capital markets	p. 160
The loss of competitiveness	p. 160
Causes of the loss of competitiveness	p. 163
Proposals	p. 164
Summary	p. 166
The Global Recession Risk	p. 167
Introduction	p. 167
US external deficit	p. 167
The credit crisis trigger	p. 171
Repairing the international financial system	p. 174
IFA: emerging market crises and soft law	p. 174
G7 central banks	p. 175
Regulatory, trade and exchange wars	p. 176
Summary	p. 181
Conclusion	p. 182
Notes	p. 185
Name Index	p. 203
Subject Index	p. 207
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