Financial Stability, the Basel Process and the New Geography of Regulation

Posted: 4 Jul 2009

See all articles by David S. Bieri

David S. Bieri

Virginia Tech - School of Public and International Affairs (SPIA); Virginia Tech - Department of Economics

Date Written: July 2009

Abstract

The post-Bretton Woods era has witnessed the integration of the global financial system at an unprecedented pace. However, much of its institutional governance structure remains hinged on the old paradigm of national economies. Despite highly globalized financial markets, I find evidence of substantial clustering in the context of regional financial activity. Addressing the regulatory challenges of globalization, the so-called ‘Basel Process’ provides policy makers with a unique institutional arrangement that straddles the gap between the old and the new geographies of financial markets. The evolving architecture of the global financial system calls for a careful balancing of globally co-ordinated, locally decentralized regulation on the one hand and effective, centralized intervention mechanisms on the other hand.

Keywords: financial stability, Basel Process, geography of regulation, international financial architecture, Basel II

JEL Classification: G18, G28, E42

Suggested Citation

Bieri, David S., Financial Stability, the Basel Process and the New Geography of Regulation (July 2009). Cambridge Journal of Regions, Economy and Society, Vol. 2, Issue 2, pp. 303-331, 2009, Available at SSRN: https://ssrn.com/abstract=1429241 or http://dx.doi.org/10.1093/cjres/rsp004

David S. Bieri (Contact Author)

Virginia Tech - School of Public and International Affairs (SPIA) ( email )

United States

Virginia Tech - Department of Economics ( email )

3021 Pamplin Hall
Blacksburg, VA 24061
United States

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