Financial Stability in International Law

By Lupo-Pasini, Federico | Melbourne Journal of International Law, June 2017 | Go to article overview

Financial Stability in International Law


Lupo-Pasini, Federico, Melbourne Journal of International Law


In the current interdependent global economic system, measures adopted nationally by governments to safeguard financial stability sometimes produce cross-border spillovers. A question arises as to how international economic law shall treat states' regulatory powers to tackle internal and external economic and financial threats. The goal of the research is to analyse (i) how international law distributes between different international subjects the social costs of global instability in the event of emergencies, and (ii) how regulatory powers are attributed in a situation of economic and financial interdependence. To do so, this article sets out a law and economics theory that conceptualises financial stability in international law as the result of a trade-off between three competing regulatory objectives: domestic stability, global stability, and financial integration. The way in which the interplay between these objectives is represented in law crucially influences the balance of rights and obligations in the formulation of national economic and financial policies, and the level of protection against economic threats. This article argues that current international law is largely inefficient because it structures the protection of financial stability as a matter of the individual rights of each state, rather than a social problem of the international community.

                             CONTENTS

I Financial Stability and Financial Integration in International
  Law                                                                49
  A The Three Objectives of the International Law of Financial
     Stability                                                       50
    1 Financial Integration                                          50
    2 Domestic Stability                                             52
    3 Global Stability                                               52
  B Conflicts and Trade-Offs                                         53
    1 Domestic Stability versus Financial Integration in
      International Law                                              54
    2 Domestic Stability versus Global Stability in International
      Law                                                            56
II The 'Problem Of Sovereignty' in the Law of Financial Stability    58
  A Externalities Affecting Financial Integration                    59
    1 Impossibilities                                                60
    2 The Inefficiency of the Current Law                            61
  B Externalities Affecting Global Stability                         63
    1 The European Free Trade Area Surveillance Authority v Iceland
      Dispute                                                        64
III Less Sovereignty or More International Law?                      66
    1 A World Financial Government?                                  66
    2 The Promise of Binding International Law                       67
IV Conclusion                                                        69

The notion of financial stability has tended to elude any uniform conceptualisation, either in pure economic theory or in the law. (1) From an economic point of view, it can be very simply described as the absence of crises or systemic risks. From a policy and legal perspective, however, the achievement of a stable economy is the culmination of a long and complex regulatory and political process that involves the formulation and implementation of different economic policies and the critical attribution of regulatory powers to different subjects at the domestic and international levels. (2) The pursuit of financial stability and economic efficiency has always ranked as one of the foremost policy objectives of any state. Monetary authorities set interest rates to encourage either investment or savings; fiscal authorities design tax policies to promote business and labour creation. During a crisis, financial authorities intervene in the market through 'lender of last resort' operations or bailout programs to maintain financial stability. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Financial Stability in International Law
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.