The redesign of the global financial architecture the return of state authority

www.ebook3000.com The Redesign of the Global Financial Architecture 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 reassertion 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 policymaking 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 Group of Twenty (G20) summit process, the creation of the FSB and the policy output of the new forums, and looks for signs of permanency, strength and possible effectiveness This work presents important new material on the financial crisis and the regulatory response to the crisis It will be valuable for researchers, teachers and students alike Stuart P M Mackintosh is the Executive Director of the Group of Thirty (G30), an international financial think tank composed of the leading central bankers, financial leaders and academic economists from across the globe Rethinking Globalizations Edited by Barry K Gills, University of Helsinki, Finland and Kevin Gray University of Sussex, UK This series is designed to break new ground in the literature on globalization and its academic and popular understanding Rather than perpetuating or simply reacting to the economic understanding of globalization, this series seeks to capture the term and broaden its meaning to encompass a wide range of issues and disciplines and convey a sense of alternative possibilities for the future Whither Globalization? The vortex of knowledge and globalization James H Mittelman The Global Politics of Globalization “Empire” vs “Cosmopolis” Edited by Barry K Gills Globalization and Global History Edited by Barry K Gills and William R Thompson The Globalization of Environmental Crisis Edited by Jan Oosthoek and Barry K Gills Rethinking Civilization Communication and terror in the global village Majid Tehranian Globalization and Contestation The new great counter-movement Ronaldo Munck Global Activism Ruth Reitan Globalization, the City and Civil Society in Pacific Asia Edited by Mike Douglass, K.C Ho and Giok Ling Ooi Challenging Euro-America’s Politics of Identity The return of the native Jorge Luis Andrade Fernandes 10 Globalization as Evolutionary Process Modeling global change Edited by Geroge Modelski, Tessaleno Devezas and William R Thompson 11 The Political Economy of Global Security War, future crises and changes in global governance Heikki Patomäki 12 Cultures of Globalization Coherence, hybridity, contestation Edited by Kevin Archer, M Martin Bosman, M Mark Amen and Ella Schmidt www.ebook3000.com 13 Globalization and the Global Politics of Justice Edited by Barry K Gills 14 Global Economy Contested Power and conflict across the international division of labor Edited by Marcus Taylor 15 Rethinking Insecurity, War and Violence Beyond savage globalization? 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and Citizenship in the New Global Order Edited by Ronaldo Munck, Carl-Ulrik Schierup and Raúl Delgado Wise 36 Edges of Global Justice The World Social Forum and its ‘Others’ Janet Conway 37 Land Grabbing and Global Governance Edited by Matias E Margulis, Nora McKeon and Saturnino Borras Jr 38 Dialectics in World Politics Edited by Shannon Brincat 39 Crisis, Movement, Management Globalising dynamics Edited by James Goodman and Jonathan Paul Marshall 40 China’s Development Capitalism and empire Michel Aglietta and Guo Bai 41 Global Governance and NGO Participation Charlotte Dany 42 Arab Revolutions and World Transformations Edited by Anna M Agathangelou and Nevzat Soguk 43 Global Movement Edited by Ruth Reitan 44 Free Trade and the Transnational Labour Movement Edited by Andreas Bieler, Bruno Ciccaglione, John Hilary and Ingemar Lindberg 45 Counter-Globalization and Socialism in the 21st Century The Bolivarian Alliance for the peoples of our America Thomas Muhr www.ebook3000.com 46 Global Civil Society and Transversal Hegemony The Globalization-Contestation Nexus Karen M Buckley 47 Contentious Agency and Natural Resource Politics Markus Kröger 48 Social Movements, the Poor and the New Politics of the Americas Edited by Håvard Haarstad, Mark Amen and Asuncion Lera St Clair 49 Development in an Era of Neoliberal Globalization Edited by Henry Veltmeyer 50 The State–Capital Nexus in the Global Crisis Rebound of the capitalist state Edited by Bastiaan van Apeldoorn, Naná de Graaff and Henk W Overbeek 51 From Empires to Imperialism The state and the rise of bourgeois civilisation Boris Kagarlitsky, translated by Renfrey Clarke 52 Global Justice and the Politics of Information The struggle over knowledge Sky Croeser 53 Labour and Development in East Asia Social forces and passive revolution Kevin Gray 54 Global Capitalism and Transnational Class Formation Edited by Jason Struna 55 Rethinking Border Control for a Globalizing World A preferred future Edited by Leanne Weber 56 Global Governance, Legitimacy and Legitimation Edited by Magdalena Bexell 57 Critical Rationalism and Globalization Towards the sociology of the Open Global Society Masoud Mohammadi Alamuti 58 Globalization Development and Social Justice A propositional political approach Edited by Ann El-Khoury 59 Globalization The career of a concept Edited by Manfred Steger and Paul James 60 Globalization and Capitalist Geopolitics Sovereignty and state power in a multipolar world Daniel Woodley 61 Dialectics in World Politics Edited by Shannon Brincat 62 The Redesign of the Global Financial Architecture The return of state authority Stuart P M Mackintosh 63 Markets and Development Civil society, citizens and the politics of neoliberalism Edited by Toby Carroll and Darryl S L Jarvis This page intentionally left blank www.ebook3000.com The Redesign of the Global Financial Architecture The return of state authority Add Add Stuart P M Mackintosh Add Add AddAddAdd Add AddAdd Add First published 2016 by Routledge Park Square, Milton Park, Abingdon, Oxon OX14 4RN and by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2016 Stuart P M Mackintosh The right of Stuart P M Mackintosh to be identified as author of this work has been asserted by him in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988 All rights reserved No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Mackintosh, Stuart P M The redesign of the global financial architecture: the return of state authority/Stuart P M Mackintosh pages cm (Rethinking globalizations; 62) International finance Financial crises I Title HG3881.M2715 2016 332’.042 dc23 2015014038 ISBN: 978-1-138-85041-5 (hbk) ISBN: 978-1-315-72470-6 (ebk) Typeset in Times New Roman by Taylor & Francis Books www.ebook3000.com For Una, John, and Bernard 182 Watching a paradigm shift evolve the lessons of their own economic history, and elected a leftist Syriza government Spain’s Podemos also threatens a similar upset of the existing order Other national political tidal waves could also rise In this final, perhaps more alarming, scenario, we would find ourselves not at the end of a stabilization process after the 2007–2008 crisis and entering a period of relative calm, but instead at a new phase – a protracted, distended, ongoing series of crises If that occurs, then the demands for still more major changes to macroeconomic and political economy models and modes of thinking, and for alternative solutions, may become hard to resist In that situation, the current regulatory shift might then become only part of, and a precursor to, a more radical political and economic shift In conclusion Crises matter and extreme crises matter most of all This book found that, faced with a great recession, a possible worldwide depression and a total global financial meltdown, leaders and technocrats moved swiftly to arrest the crisis, to support the global economy and to begin reforms Ideological and economic shibboleths were cast aside Leaders and central bankers acted in a concerted, coordinated, collective fashion to a degree not seen for many decades Leaders and technocrats reasserted state authority over global financial markets and seized back control over dysfunctional markets and banks Together they made a narrative paradigmatic leap away from deregulatory neoliberalism and embraced a new activist macroprudential regulatory worldview These actors created a new architecture and a key institution, the Financial Stability Board, at the centre, to take their policies forward and coordinate technical reforms This narrative leap and the institutional changes and elements of the policy response taken as a whole create the architectural structure needed to buttress the systemic stability of financial markets and of firms, and thus to mitigate the severity of future crisis events That is the declared goal and it may well succeed Finance and banking is more risk averse than it was in 2007–2008; firms are better capitalized, regulatory vigilance continues and there has been no backsliding Banking may yet become boring Worries persist, however But that is a good thing Complacency and lassitude are dangers that must be avoided if central bankers and their supporters are to spot developing crises and risks, and if they are to simultaneously continue to effectively defend their narrative worldview and constructs from the attacks by the many who self-interestedly wish to stymie or perhaps even dismantle the new architecture Note The G20 has sought to consult with an ever-broader cross-section of society, organized under five groups: Business 20, Labour 20, Civil 20, Think 20 and Youth 20 www.ebook3000.com Watching a paradigm shift evolve 183 References Baker, M (2013) ‘When new ideas meet existing institutions: why macroprudential regulatory change is a gradual process’, in Moschella, M and Tsingou, E (eds) Great expectations, slow transformations: incremental change in post-crisis regulation Colchester: European Consortium for Political Research (ECPR): 35–56 Bloomberg (2014) ‘Big bank “living wills” get failing grade’, August [Online] Available at: www.bloomberg.com/news/articles/2014-08-05/biggest-u-s-banks-toldto-simplify-their-living-wills- (accessed: February 2015) Blyth, M (2013) ‘Paradigms and paradox; the politics of economic ideas in two moments of crisis’, Governance: An International Journal of Policy, Administration, and Institutions, 26(2): 197–215 Carney, M (2014) ‘Inclusive capitalism: creating a sense of the systemic’ Speech given by Mark Carney, Governor of the Bank of England at the Conference on Inclusive Capitalism, London, 27 May [Online] Available at: www.bankofengland.co.uk/p ublications/Documents/speeches/2014/speech731.pdf (accessed: February 2015) Cooper, A and Thakur, R (2013) The Group of Twenty London: Routledge Gould, S (1990) Wonderful life: the Burgess Shale and the nature of history New York: W.W Norton & Company Haldane, A (2012) ‘A leaf being turned’ Speech delivered at Friend’s House, London, 29 October [Online] Available at: www.bankofengland.co.uk/publications/Docum ents/speeches/2012/speech616.pdf (accessed: 30 October 2012) Hall, P.A (1993) ‘Policy paradigms Social learning, and the state: the case of economic policymaking in Britain’, Comparative Politics, 25(3): 275–296 Hall, P.A (2013) ‘Brother, can you paradigm?’, Governance: An International Journal of Policy, Administration, and Institutions, 26(2): 189–192 Harris (2015) ‘The 2015 Harris Poll Reputation Quotient’ [Online] Available at: www.harrisinteractive.com/Insights/2015RQ100MostVisibleCompanies.aspx (accessed: 10 February 2015) Helleiner, E (2009) ‘Special forum: crisis and the future of governance’, Global Governance, 15: 1–28 Helleiner, E (2014) The status quo crisis: global financial governance after the 2008 meltdown Oxford: Oxford University Press Huffington Post (2014) ‘$128 billion in bank fines’, August [Online] Available at: www.huffingtonpost.com/2014/08/08/big-bank-fines-total_n_5659317.html (accessed: February 2014) Krugman, P (2012) ‘Raygunomics’ in The Conscience of a Liberal blog, New York Times, 14 May [Online] Available at: http://krugman.blogs.nytimes.com/?s=auster ions (accessed: 30 July 2013) Mackintosh, S (2011) Interview Former G20 sherpa, November Mackintosh, S (2011) Interview G20 principal supervisor, December Mackintosh, S (2011) Interview G20 central bank, former deputy governor, December Mackintosh, S (2012) Interview 12 G20 finance ministry official, 27 January Mackintosh, S (2012) Interview 22 Former G20 finance minister, central bank governor, May Mackintosh, S (2012) Interview 24 G20 central bank governor, July McKinsey (2015) ‘Debt and (not much) deleveraging’, McKinsey Global Institute (MGI), February 2015 [Online] Available at: https://custom.cvent.com/F6F80CC 184 Watching a paradigm shift evolve 765A94B949C1A96D98D89BCC5/files/5c25554e638c40b69b7c3b073124e3a7.pdf (accessed: February 2015) MIT Sloan (2014) ‘MBA Current Employment Report’ [Online] Available at: http://mitsloan.mit.edu/career-development-office/employment-reports/mba-currentreport (accessed: February 2015) Moschella, M and Tsingou, E (eds) (2013) Great expectations slow transformations: incremental change in post-crisis regulation Colchester: European Consortium for Political Research (ECPR) Orwell, G (1946) Animal farm New York: Signet Payne, A (2005) The global politics of unequal development New York: Palgrave Macmillan Piketty, T (2014) Capital in the twenty-first century Cambridge, MA: Harvard University Press Putnam, R (1988) ‘Diplomacy and domestic politics: the logic of two-level games’, International Organization, 42(3): 427–460 Stiglitz, J (2010) ‘Needed: a new economic paradigm’, Financial Times, 19 August [Online] Available at: www.ft.com/intl/cms/s/0/d5108f90-abc2-11df-9f02-00144fea bdc0.html#axzz1yGalnhcI (accessed: 19 June 2012) Subacchi, P and Cooper Andrew, F (2010) ‘Global economic governance in transition’, International Affairs, 86(3): 607–741 The Hill (2014) ‘Poll: Americans want tougher bank regs’, 17 July [Online] Available at: http://thehill.com/regulation/212537-poll-americans-favor-tougher-banking-regulations (accessed: February 2015) The Independent (2014) ‘Mark Carney: bankers should pay fines from bonus pots’, 17 November [Online] Available at: www.independent.co.uk/news/business/news/ma rk-carney-bankers-should-pay-fines-from-bonus-pots-9866699.html (accessed: February 2015) Trichet, J (2013) ‘Central banking in the crisis – conceptual convergence and open questions on unconventional monetary policy’, Per Jacobsson lecture, 12 October [Online] Available at: www.perjacobsson.org/lectures/101213.pdf (accessed: February 2015) Tsingou, E (2014) ‘The club-like rules in global governance’, Political Quarterly, 85(4): 417–419 US News (2013) ‘Americans agree on regulating Wall Street’, 16 September [Online] Available at: www.usnews.com/opinion/blogs/economic-intelligence/2013/09/16/pollshows-americans-want-more-wall-street-regulation-five-years-after-the-financial-crisis (accessed: February 2015) Wade, R (2008) ‘Financial regime change’, New Left Review, 53, Sept.–Oct., pp 5–21 Wall Street Journal (2013) ‘Elite grads in business flocking to tech’ [Online] Available at: www.wsj.com/articles/SB10001424052702303661404579180152676790032s (accessed: February 2015) Wilson, C.A (2000) ‘Policy regimes and policy change’, Journal of Public Policy, 20(3): 247–274 www.ebook3000.com Index Abbott, Tony 79 accounting standards 150; progress on 170 Ackerlof, G.A and Schiller, R.A 1, activism, crisis response and 44 Adler, E 100 Admati, A.R and Hellwig, M 137, 151 Admati, A.R., DeMarzo, P.M., Hellwig, M.F and Pfleiderer, P 137 advisory documents, FSB and complex matters 129 AFP (Agence France Presse) 137 African voices, paucity of 38 agency-level financial regulatory reforms 68–9 agency-to-agency coordination and cooperation 97–8 Allen, F and Gale, D 2, 10, 130 Alston, P 117 American International Group (AIG) American Recovery and Reinvestment Act (ARRA, 2009) 32 Andresen, Svein 110, 119 Anglo-Saxon worldview 2, Animal Farm (Orwell, G.) 78, 108, 166 Aristotle Asian Infrastructure and Investment Bank (AIIB) 87 Aslund, A 86, 88 Assenza, G., Sokolickova, Z and Martynau, A 3, 12 Atlas Shrugged (Rand, A.) 130 authoritative leadership of FSB 102 authoritative strength of FSB 168 Bachrach, P and Baratz, M.S backsliding, possibility of 176–7 bad behaviour, high price of 175 Bair, S 132–3, 139, 146 Bair, S., Brown, S and Huntsman, J 134 Baker, M 130, 168 balance of power and authority, post-crisis change in 175 Bank for International Settlements (BIS) 2, 54, 55, 110, 132, 134, 137, 138, 140, 141 bank leverage 84 Bank of America banking in disrepute 173–4 Barnier, M 106 Basel Committee on Banking Supervision (BCBS) 49, 54, 132, 136, 137–8, 142, 146, 151 Basel III 60, 72, 76, 79, 86, 91, 113, 125, 129, 131–2, 140, 142, 145, 155, 170; and Basel-plus as ‘new normal’ 139–40; capital and further capital requirements 134; components of 133–4; cost of 136–7; emerging market voices in 133; enforcement processes 138; macroprudential policy consensus and 151–3; risk-taking behaviour, resilience against 134 Basel-plus, national add-ons 138–9 BBC News 49, 84 Beeson, M and Bell, S 26, 85 Beeson, M and Broome, A 58 Bennett, C.J 100, 124 Benoit, B 30, 34 Bernanke, Ben 130 The Big Short (Lewis, M.) 142 Black, J 128 Blackden, R 75, 77 Blair, Tony 173 Blanchard, O 87 Blanchard, O., Romer, D., Spence, M and Stiglitz, J 100, 151 Bloomberg 170 186 Index Bluestein, P 57, 102 Blyth, M 9, 12, 28, 82, 96, 99, 167, 171 boom-and-bust cycles 2; see also economic cycles Borio, C 130, 151 Bradford, C.I 47, 87 Bradford, C.I and Linn, J.F 49 Bretton Woods Committee 105, 131 Bretton Woods system 74, 80, 82, 171 Brilmayer, L 127 Brisbane summit (November, 2014) 5, 67, 69, 78–80 Brookings Institution 107 Brown, C.O and Ding, S 143 Brown, Gordon 2, 25, 26, 30, 33–4; reformist zeal at 2009 G20 summits 47, 48, 49, 59–60; requirements from G20 summits 45–6 Buchanan, M 99 Bush, George W (and administration of) 2, 25, 26, 27, 30, 33, 34, 36 Cameron, David 70, 72 Cannes summit (November, 2011): dissension within G20, emergence of 67, 74–6; G20 leaders’ forum, creation of 39; organizational footing for FSB established 76; reflections on Greece in 75 Capital in the Twenty-First Century (Piketty, T.) 91, 176 capital requirement, level and type of 132–5 Carney, Mark 55, 101, 107, 110, 111, 112, 119; paradigm shift, evolution of 167, 169, 174–5, 177, 181; policy outcomes for FSB 132, 134, 145, 147, 154 Cartapanis, A and Herland, M 102 Caruana, Jaime 55, 101, 132, 133, 134, 143 causes of crisis, identification of 99–100 Center for Strategic and International Studies (CSIS) 26 central bankers: collective state and central bank control, reassertion of 101–2; epistemic community of 97, 100–101; institutional achievement of central bank post-crisis activism 119–20; policymaking process and 36; populist, anti-finance stance on 174–5; reflections of biases of 117; retention of initiative by 174–5 central banking, paradigm shift and 16–18; central bankers, epistemic communities of 17; epistemic communities 17; policy consensus, epistemic communities and paradigm shift 17–18 central counterparties (CCPs) 141, 153 Centre for Responsive Politics 69 Chen, S., Stolberg, S.G and Sanger, D.E 72 China: economic contraction in 3; economic power of 1; US and, problems between 87 China Daily 139 Chorev, N and Babb, S clearing of OTC derivatives 140–41; see also derivatives markets Clinton, Bill Cohen, B.J 74 cohesiveness 16, 180; of macroprudential policy paradigm 72, 103; of policy consensus 52, 98, 138; technical cohesiveness 111 compensation, bankers’ pay and bonuses 146–8 complacency, danger of 182 compliance 137–8, 142; compliance reporting 138; enforcement and 128–9; monitoring and 151 Constancio, V 3, 29, 100, 151 control: importance of design and 98; by national actors 39; process uniformity, FSB and 153 Cooper, A and Thakur, R 116, 164 Cooper, A.F 26, 33, 35, 50, 56 Cooper, G 131 coordination of regulation 125; FSB and development of 103–6 Copernicus, Nicolaus 8, 19, 152, 171 core dominance, institutional leadership of G20 and 85–6 credit default swaps (CDSs) 142 credit-fuelled personal consumption 1, Crimea, tensions of Russian annexation of 67, 79, 88 crises: altered worldview following 166–7; crisis-influenced change in policy narratives 19; opportunity resulting from 163–4; policymakers' experience of 2; positive effects of 164–5, 182; potential for ongoing series of 182; pressures of 24–5 crisis management: crisis as opportunity and 101–2; emergence of G20 and 29–30; G20 summitry and 24–5; three phases of 164–5 www.ebook3000.com Index crisis response, paradigm shift and 11–13; central banking, power and authority of 13; consensus policy narrative, paradigm shift and 12; incrementalism 11, 12; laissez-faire neoliberalism 12; macroprudential policies 13; paradigm replacement, conditions for 12; paradigm shift: and disputes concerning 12–13; Hall and orders of change 11, 12; Kuhn and process of 11; policymakers, challenges to 12; technocratic shift 13 Crockett, Sir Andrew 57 Crotty, M 13 Darling, A 45, 47 Davies, H and Green, D 54 Davis, B and Poletta, D 24, 37 decision making: within FSB 112–13; G20 leaders’ forum 37–8 derivatives markets 1, 50, 91, 96–7, 109, 125, 140–41, 142–3, 144, 153, 155, 169; see also clearing of OTC derivatives Dervis, Kemal 73–4 discredited deregulationary mindset 96 dissension within G20, emergence of 5, 66–92; agency-level financial regulatory reforms 68–9; Asian Infrastructure and Investment Bank 87; bank leverage 84; Bretton Woods system 74, 80, 82; Brisbane summit (November, 2014) 5, 67, 69, 78–80; Cannes declaration: organizational footing for FSB established 76; reflections on Greece in 75; Cannes summit (November, 2011) 67, 74–6; China and US, problems between 87; core dominance, institutional leadership and 85–6; Crimea, tensions of Russian annexation of 67, 79, 88; dissension and dialectic of crisis response and reaction 89–92; disunity and lack of regulatory progress 72–4; Dodd-Frank Act, efforts to scale back 69; emerging countries, growing into roles 86–7; Eurozone and Greece 74–6, 77; firewall building 76–7; flexible leadership, G20 as response to crisis through 87–8; G19 + in Brisbane 78–80; G20 evolution, third phase of 67–8; global finance, scope and depth of re-regulation of 80–81; global imbalances, divergent views on causes of 68; 187 global macroeconomic issues 84; global summitry, harsher light on 67–8; Greece, Eurozone and 74–6; inclusion of rising powers, importance of 87; incremental steps, structural strengthening through 81; International Monetary and Financial Committee 87; International Monetary Fund (IMF), reform of 72–3; international monetary system, lack of consensus on reform of 68; international regulatory processes, effects of 84; legitimacy, importance of 88–9; Los Cabos summit (June, 2012) 5, 67, 77; membership increases, G20 strength and 89; outer limits of the new policy consensus paradigm 74; paradigm limits and boundaries 83–4; paradigm type, leadership and 85–6; ‘pecking order,’ emergence of change in 73–4; perspective, importance of 81–5; plurilateralism, shift towards 88; policy paradigm, potential for weakening of 83; political leaderships, common concerns of 66; real interest rates below-zero per-cent 69; reform wave, worldview shift and 82–3; regulatory and reform processes, continued success despite of 73, 81, 90–91; regulatory fines and legal costs 84; rhythmic fluctuation in G20 evolution 90; Russia and West, rising diplomatic dispute between 79; Russian presidency and summit (September, 2013) 5, 67–8, 69, 77–8; Seoul summit (November, 2010) 66–7, 71–2; sovereignty, legitimacy and 88–9; St Petersburg summit (September, 2013) 5, 67–8, 69, 77–8; state-to-state power-based diplomacy, reversion to 91–2; surplus and deficit countries, emergence of splits between 70; tax avoidance problem 78; technical-level policy consensus 68–9; technocratic leaderships, common concerns of 66; tension between states’ dominant leaders in FSB and emerging country voices 79–80; Thatcherite revolution 82; Toronto summit (June, 2010) 66, 69–70; total loss-absorbing capital (TLAC), new standard for 79–80; Trioka of leadership 75–6; Turkey’s G20 presidency (2015) 87; Ukraine, Russian action in 79, 88; US 188 Index imbalances narrative, Chinese rejection of 71–2; World Trade Organization (WTO) trade facilitation deal 78; worldview, paradigmatic shift in, creation of new normal and 80–81 Dodd-Frank Act, efforts to scale back 69 Dong-Hwi, L 70 Downs, G.W and Jones, M.A 128 Draghi, Mario 33, 36, 57, 167, 177; creation of FSB and institutional structure 99, 101, 102, 106, 107, 110–12, 113, 114, 119 Drehmann, M and Tarashev, N 134 Dudley, William 146 economic chasm, depth of 28–9 economic crisis (2008–9) 3; state-led response to 3–4 economic cycles 8–11; banking, globalization of 9–10; Brazil, economic power of 10; China, economic power of 10; credit crunch, spread of economic contagion and 10; crisis response (2007–8) 10–11; deregulation 9, 10; economic and financial diplomacy 10–11; exogenous shocks 9, 10; financial crises, paradigm shift and 9; G7 (Group of Seven) 10; gold window closure 9; hegemonic power of US, decline of 10; ideological cycles 9; India, economic power of 10; internationally coordinated collective response (2008) 11; laissez-faire neoliberalism 9; challenges to 10; rhythm within 9; self-regulation 10; state power, weakening of 9; technocratic central banking 11; Washington Consensus The Economist 24, 25, 34–5, 49, 84 Eichengreen, B 82 El-Erian, M 3, 12 Elliot, G 31, 34 Elson, A Emanuel, R 47 emerging countries: growing into G20 roles 86–7; voices of 26–7, 36, 38, 53, 98, 133 endogenous incremental driven dynamics 170–71 enforcement and compliance, FSB and 128–9 enlargement of FSB, constant pressure for 116 enlargement of FSF, G20 commitment to 32–3 Eurozone and Greece 74–6, 77 families’ net worth, loss of Federal Deposit Insurance Corporation (FDIC) 3, 132, 143, 144–5, 169–70 Federal Reserve Bank of Dallas 134, 146 Federal Reserve Bank of St Louis 3, 32 Federal Reserve (US) 2, 10, 130, 132, 139, 142, 146, 174 Fergusson, N., Brady, B., Wells, R., Krugman, P and Soros, G 3, 12 financial crisis (1997–8) Financial Crisis Inquiry Commission (FCIC) 1, 10, 140, 147 financial engineering 1, financial risk, spread of financial sector, distrust and dislike of 174 Financial Services Authority (FSA, UK) Financial Stability Board (FSB) 4, 76, 96–120, 128, 141, 144, 145, 146–7, 148–9; agency-to-agency coordination and cooperation 97–8; authoritative leadership 102; causes of crisis, identification of 99–100; central bankers: epistemic community of 97, 100–101; reflections of biases of 117; Chair, central figure of 107; collective state and central bank control, reassertion of 101–2; common goals, crisis and clarification of 96; control, importance of design and 98; coordination of regulation, FSB and 103–6; creation of 97–8, 99–100; crisis management, crisis as opportunity and 101–2; decision making within 112–13; design, importance of control and 98; discredited deregulationary mindset 96; dominance initially by European and North American principals 111–12; emerging economy voices 98; enlargement, constant pressure for 116; G20-FSB-SSB process 103–6, 147–8; qualitative strength of 105; G20 leaders’ forum, creation of 37; general support, importance of 118; geographic bias 111–12; identity, distinct nature of 98; institutional achievement of central bank post-crisis activism 119–20; institutional and legal basis 109–10; institutional and www.ebook3000.com Index policy activism, pivotal momentum for 96; institutional design and control, importance of 98; institutional secrecy, undermining potential of 117–18; institutional structure of 106–10; International Monetary Fund (IMF) 98, 101, 109, 112, 113, 116, 117, 119; international regulatory cooperation, FSB and 103–6; knowledge elite, central bankers as 100–101; leadership of, evolution of 97; legitimacy and 115–16, 118; mandate of 102–3; modus operandi 98; paradigm shift: represented by creation of FSB 98–9; Stiglitz and difficulties of 96–7; plenary decision-making body 108; policy coordination, institutional structure reflecting permanence for 110–11; political capital of G20 97; processes 165, 166; reformist zeal at G20 2009 summits: creation of 44, 48; role of 55–9; regional consultative groupings (RCGs) 109; resources 98, 110; secretariat 110; shock of financial crisis, policy options in face of 96–7; solidity and structural permanence 110–11; standard-setting bodies 109; standing committees 108–9; state obligations, dealing with lack of treaty basis for 111; Steering Committee 107–8; finance ministry inclusion in membership of 114; institutional dominance of 114–15; membership of, evolving state of 113–15; subgroups of key member states 113; transparency, weakness in new structure 116–17; working groups 109; World Bank 98, 109, 116, 117, 120n2; World Trade Organization (WTO) 111 Financial Stability Forum (FSF) 32 Financial Times 26–7 firewall building 76–7 Fischer, Stan 57, 174 flexible leadership, G20 as response to crisis through 87–8 FOREX 84, 151, 154, 175 formalization, enlargement and 178 France, economic contraction in Freidman, Milton 82 fundamental shift, Washington as beginning of 28 G7 (Group of Seven) 20 189 G30 (Group of Thirty) 99–100, 129–30, 146 G20 (Group of Twenty) 4–5, 103, 110, 130, 140; dissension within, emergence of 70, 72, 75, 76, 78; effectiveness of 178; evolution of, third phase of 67–8; G19 + in Brisbane 78–80; G20-FSB-SSB process 103–6, 147–8; qualitative strength of 105; reformist zeal in summitry 47, 48, 49, 50; summitry and technical policymaking 164–5 G20 leaders’ forum, creation of 5, 24–40; African voices, paucity of 38; Cannes summit (November, 2011) 39; central banking community, policymaking process and 36; control by national actors 39; crises, pressures of 24–5; crisis management: emergence of G20 and 29–30; G20 summitry and 24–5; decision making 37–8; detailed plans, later determination of 31–2; economic chasm, depth of 28–9; emergency ‘firefighting’ summit of 2008, reluctance of US to host 25–7; emerging-country leaders support for 26; emerging-country voice 26–7, 36, 38; enlargement of FSF, commitment to 32–3; European voice 34, 38; Financial Stability Board (FSB) 37; Financial Stability Forum (FSF) 32; frequency of summits 39; fundamental shift, Washington as beginning of 28; G8 plus five structure, proposal for 25; grandstanding, fears of 26; International Monetary Fund (IMF): reenergising of 37; resource boost for 32; laissez-faire neoliberal norms, reappraisal of 35; legal personality 38–9; membership of G20 37; participants 38; policy consensus, shaping of new paradigm and 29–30, 35–6; political direction, broad outline of 30–34; preparatory meetings 39–40; presidency, effectiveness and power of 39; reform of IMF, commitment to 32–3; resources 38–9; self-regulation, criticism of 34; state power and authority, reassertion of 29, 31; summit presidency 37; summitry as process 27–9; technical agencies, participation of 32; Trioka of leadership 39; Troubled Asset Relief Program (TARP) 25, 32; United States, summitry and position 190 Index of 29; Washington declaration: decisions embedded within 32–3; depth of content within 33–4; Washington G20 summit (November, 2008): importance of 27–8, 34–6; results from 30, 32–4, 35; World Bank, resource boost for 32 G8 plus five structure, proposal for 25 Galbraith, J.K 2, Galileo 8, 171 Gamble, A 9, 27, 82 Geithner, Tim 47–8, 51, 71, 96, 98, 101, 132, 133 generally accepted accounting principles (US, GAAP) 150 Gensler, G 140, 141 Germain, R 85 Gills, B 29 Gilpin, R 68, 71 global debt levels 181 global economic imbalances 50–51; divergent views on causes of 68 global finance, scope and depth of re-regulation of 80–81 global financial architecture: FSB, role of 55; G20 at centre of 54–5; International Monetary Fund (IMF), post-crisis position and role of 57–9; post-crisis position 57–9; reformist zeal at G20 2009 summits 54–9, 62–3; regulatory architecture, additions to 19–20; standard-setting bodies, enhanced and coordinated role for 55–6 global macroeconomic issues 84, 170 Gold, H 130 Goldman Sachs Group Inc Goodhart, C 10 Goolsbee, A Gore, C 28 Gorton, G 3, 148 Gould, S 163 grandstanding, fears of 26 Great Depression Greece, Eurozone and 74–6 Greenspan, Alan 130 Guardian 78 Gudmundsson, M 99 Guebert, J 70 Guebert, J and Shaw, Z 51 Guerrera, F and Pimlott, D 139 Guha, K 50 Haas, P.M 17, 28, 32, 97, 99, 100, 124 Haldane, A and May, R.M 134 Haldane, Andy 134, 143, 156, 175 Hall, Peter A 6, 11, 28, 59, 72, 82, 85, 98, 120, 163, 166, 180; policy outcomes for FSB 125, 135, 143, 151, 152, 156 Harper, Stephen 27, 69–70 Harris Reputation Poll (2015) 173–4 HBOS Helleiner, E 10, 12, 51, 60–61, 63, 96, 98, 112, 163, 167; policy outcomes for FSB 135, 140–41, 142, 155–6 Helleiner, E., Pagliari, S and Zimmermann, H 115, 116 Hildebrand, Philipp 46, 101, 132 The Hill 173 Holzinger, K and Knill, C 34, 100 House of Commons Treasury Select Committee 46 Huffington Post 175 ideational shift 168–9 Ikenberry, J.G 10 inclusion of rising powers, importance of 87 incrementalism 167; incremental steps, structural strengthening through 81 The Independent 174 institutional design and control see Financial Stability Board (FSB) International Association of Insurance Supervisors (IAIS) 49, 54 international diplomacy, dynamics in 14–16; diplomatic negotiating calculus, change in 16; two-level games in crisis and non-crisis periods 15, 16 international financial institutions (IFIs), boost for resources of 47 international financial regulatory authority 4; architectural innovation, calls for 4; FSB approach 127–8; state and market authority, contestation between international financial reporting standards (EU, IFRS) 150 International Monetary and Financial Committee (G20) 87 International Monetary Fund (IMF) 26, 45, 73, 113; Financial Stability Board (FSB) 98, 101, 109, 112, 113, 116, 117, 119; reenergising of 37; reform of 49, 72–3; resource boost for 32 international monetary system: crisis and reform of 61; lack of consensus on reform of 68 www.ebook3000.com Index International Organization of Securities Commissions (IOSCO) 49, 54, 142, 153 international trade flows, collapse of Jackson, J 111 Jacques, M 29 Johnson, S and Kwak, J 10 Johnson, Simon 34, 81, 146 Jones, B 24, 33 Joseph, Sir Keith 82 Kapstein, E 10 Kawai, M 131 Kennedy, S and McKee, M 30, 34 Key Attributes of Effective Resolution Regimes (FSB, 2011) 144 Keynesianism 11, 30, 51, 70, 165 Kindleberger, C.P and Aliber, R 2, King, C 79 King, Mervyn 2, 10, 46, 99, 101, 130, 132, 138–9, 146 Kirkup, J and Waterfield, B 30 Kirton, J 85 Kirton, J and Guebert, J 27, 31, 36 knowledge elite, central bankers as 100–101 Krugman, P 51, 165 Kuhn, Thomas 8, 9, 11, 27, 28, 46; Kuhnian narrative waves 19, 155, 165 Kvale, S and Brinkmann, S 13 Lagarde, Christine 59 laissez-faire neoliberalism 2; legitimacy crisis for 3; norms of, reappraisal of 35 Lander, M 32, 34, 35 Landesbanks in Germany 132 Layne, C 29 Lazer, D 97, 100 Lea Pemberton, Robert 10 leadership: political leadership, common concerns of 66 leadership of FSB: evolution of 97; nimbleness and cohesion of 179 legal personality 38–9 legitimacy: core dominance and developments at FSB on 115–16, 118; importance for G20 of 88–9 Levi-Faur, D 97, 100, 136 Lewis, Michael 1, 142 living wills 144–5 London Interbank Offered Rate (LIBOR) 84, 151, 154, 175 191 London summit (April, 2009): clear deliverables in 47–9; declaration from, reactions to 49; paradigm shift resulting from 164; policy output from 130; reform proposals at 44, 45–6, 47–9, 60 Lopez, L 143 Los Cabos summit (June, 2012) 5, 67, 77 MacGregor, R 35 Mchesney Martin, William 130 McKinsey 181 Mackintosh, S 16, 20n3; creation of FSB and institutional structure 97, 99, 102, 104, 105, 112–14, 119; dissension within G20, emergence of 70, 72, 75, 76, 85, 86; G20- leaders’ forum, creation of 24–5, 31, 32, 33, 35; paradigm shift, evolution of 164, 165–6, 167, 168, 180; policy outcomes for FSB 124, 125, 128, 129, 131, 138; reformist zeal at G20 summits 44, 47, 48, 49, 58, 59–60 MacLean, B and Nocera, J 1, macroprudential policy: Basel III Accord and policy consensus 151–3; consensus shift to 125, 129–31; paradigm shift to 168–9 Malloch-Brown, Mark 73 Manikew, G 130 Mantegna, Guido 26 markets: equilibrium in 2; panic in 31, 44, 76–7, 130 Martin, Paul 116, 178 Masters, B and Baer, J 136 Merkel, Angela 25, 26, 30, 34, 49, 70, 79 Merrill Lynch Metternich, Prince Klemens von 88 Miles, D., Yang, Y and Marcheggiano, G 138 Miles Jr., R.E 137 Mina, A and Sufi, A Minsky, H 2, MIT Sloan 174 Mitchell, N.J., Herron, K.G., JenkinsSmith, H.C and Whitten, G.D 28 Moore, J 69 Morgan Stanley Moschella, M and Tsingou, E 12, 61, 81, 135, 152 Moschella and Tsingou 170–71 Moscow Times 78 mutual assessment process (MAP) 51 192 Index narrative shift, concrete expression of 135–6 narrative waves, convergence of 165 narratives in political economy, importance of 13–14 national actions in support of paradigm 172–3 neoclassical economics 2, 12 neoliberal worldview 2, 3, 11, 81 New York Times 141 Nixon, Richard Noyer, C 100, 106, 111 Obama, Barack (and administration of) 32, 45, 46, 47, 49, 50–51, 60, 67, 78, 79, 177 Occupy Wall street, signal from 175–6 Onaran, Y 146 Organisation for Economic Co-operation and Development (OECD) Orwell, George 78, 108, 166 O'Toole, J 40 overnight repo market Padoa-Schioppa, Tommaso 1, 9, 74, 83–4, 139 Palais Royale Initiative (2011) 74 Palley, T.L 12 paradigm limits and boundaries: dissension within G20, emergence of 74, 83–4; reformist zeal at G20 2009 summits 60–61 paradigm shift 6, 163–82; accounting standards, progress on 170; another financial crisis spurring further shift, possibility of 180–82; authoritative strength of FSB 168; backsliding, possibility of 176–7; bad behaviour, high price of 175; balance of power and authority, post-crisis change in 175; banking in disrepute 173–4; Bretton Woods system 171; central bankers, retention of initiative by 174–5; cohesiveness 180; complacency, danger of 182; crises: altered worldview following 166–7; opportunity resulting from 163–4; positive effects of 164–5, 182; potential for ongoing series of 182; crisis-influenced change in policy narratives 19; crisis management, three phases of 164–5; defence, maintenance and gradual extension of paradigm 177–80; endogenous incremental driven dynamics 170–71; evolutionary steps 172; Federal Deposit Insurance Corporation 169–70; financial sector, distrust and dislike of 174; Financial Stability Board (FSB): represented by creation of FSB 98–9; Stiglitz and difficulties of 96–7; Financial Stability Board processes 165, 166; formalization, enlargement and 178; G20 effectiveness 178; G20 summitry and technical policymaking 164–5; global debt levels 181; global macroeconomic issues 170; global regulatory architecture, additions to 19–20; ideational shift 168–9; incrementalism 167; institutional evolution of FSB 179; international and national policy implementation in response to 171–2; leadership and control of FSB 179; London summit (April, 2009) 164; macroprudential narrative 168–9; narrative waves, convergence of 165; national actions in support of paradigm 172–3; Occupy Wall street, signal from 175–6; opportunity, events in 2007–2008 and creation of window of 164; perspectives on 20; policy consensus, importance of change in 171; policy evolution by marginal adjustment 171; policy output of FSB: conditions for occurrence of 124; measurement of 124; policy responses to crisis, aims of 182; policy shifts, disjunctive breaks which then unfold over years 171–2; policy strengths, inequalities in 169–71; policymaking strength and 166–7; political effects of crisis 181–2; political ownership, engagement and 178; populist, anti-finance stance of central bankers 174–5; power shift 165–6; preconditions for another major shift in policy, Hall’s perspective on 180; progress, additive continuation of 179; reform process, transnational community and opportunity in 168; reformist zeal at G20 2009 summits: beginnings of 59–63; Kuhn and process of 46; lasting and consequential nature of 61–2; regulatory architecture, extension of 180; regulatory paradigm, possible futures for 176–82; regulatory reality, central bankers in defence of 174–5; regulatory reform wave 19; risk aversion 182; Russia, foreign policy www.ebook3000.com Index clashes with 178–9; scandals in banking, continuing revelation of 175; shadow banking, progress on 170; societal and cultural currents 173; state authority, reassertion of 172–3, 182; status quo crisis? 167; Stiglitz and difficulties of 163; Thatcherite revolution, re-regulatory shift of 171; third-order institutional nexus, FSB as 167–8; ‘too big to fail’ problem, difficulties of 169–70; total loss-absorbing capital (TLAC) proposal 170; transparency for FSB 179–80; underlying cultural and societal currents, identification of 173; ‘unifying’ effect of crisis at G20 summits 164–5; voter anger at bankers 173–4; warning from Piketty 176; Washington G20 summit (November, 2008) 20, 164; worldview, crises and alterations of 166–7; see also third-order changes paradigm type, leadership and 85–6 Parker, G., Barber, T and Dombey, D 30 Patrick, S.M 50, 88 Paulson, Hank 25, 26 Payne, A 27–8, 38, 82, 171 ‘pecking order,’ emergence of change in 73–4 peer review 129 People’s Bank of China (PBOC) 71 perspectives: importance of 81–5; on paradigm shift 20 Piketty, Thomas 91, 176 Pittsburgh summit (September, 2009): policy output resulting from 140–41; reformist zeal at 44, 46, 50–51 pledge-based approach 127–8; pledges with international reach 136 plenary decision-making body ay FSB 108 plurilateralism, shift towards 88 policy consensus: importance of change in 171; shaping of new paradigm and 29–30, 35–6 policy coordination, reflection of permanence for 110–11 policy evolution by marginal adjustment 171 policy output of FSB 6, 124–57; accounting standards 150; advisory documents on complex matters 129; Bank for International Settlements (BIS) 132; Basel III 60, 72, 76, 79, 86, 193 91, 113, 125, 129, 131–2, 140, 142, 145, 155, 170; and Basel-plus as ‘new normal’ 139–40; capital and further capital requirements 134; components of 133–4; cost of 136–7; emerging market voices in 133; enforcement processes 138; macroprudential policy consensus and 151–3; risk-taking behaviour, resilience against 134; Basel-plus, national add-ons 138–9; capital requirement, level and type of 132–5; central counterparties (CCPs) 141, 153; clearing of OTC derivatives 140–41; compensation, bankers’ pay and bonuses 146–8; compliance 137–8; control, FSB and process uniformity 153; coordination of regulation 125; credit default swaps (CDSs) 142; emerging market voices 133; enforcement and compliance 128–9; Federal Deposit Insurance Corporation (FDIC) 132; Federal Reserve 132; generally accepted accounting principles (US, GAAP) 150; implementation and exemptions 141–3; international financial regulation, FSB approach to 127–8; international financial reporting standards (EU, IFRS) 150; Landesbanks in Germany 132; living wills 144–5; London summit (April, 2009) 130; macroprudential policy: Basel III Accord and policy consensus 151–3; consensus shift to 125, 129–31; macroprudential tools to be applied consistently, agreement on 131; measurement of success in FSB policymaking 155–7; narrative shift, concrete expression of 135–6; paradigm shift: conditions for occurrence of 124; measurement of 124; peer review 129; Pittsburgh summit (September, 2009) 140–41; pledge-based approach 127–8; pledges with international reach 136; policy activism coupled with national actions 126; policy output, significance in related areas 125–6; policy process, factors impacting on 126; policy strength, consensus strength and 150–51; policy successes 124–5; principles-based approach 128; progress, nullification through paradigm conflict and lack of consensus 154–5; regulatory reforms as waves 135; reinforcement of new paradigm 194 Index 126; resolution regimes 144; shadow banking, regulation of 148–50; standards and fluid limits of regulatory shift 153–4; strong policies, strength of consensus and 150–51; success, definition of 126; ‘too big to fail’ problem, difficulties of 140, 143–4; total loss-absorbing capital, next wave of reform? 145–6 policy paradigm, potential for weakening of 83 policy shifts, realities of 171–2 policy strength: consensus strength and 150–51; inequalities in 169–71; paradigm shift and 166–7 political capital of G20 97 political direction of G20, broad outline of 30–34 political effects of crisis, paradigm shift and 181–2 political ownership, engagement and 178 Political Quarterly 20n1 Porter, T 85 power shift 165–6 principles-based approach 128 Principles for Sound Compensation Practices (FSF, 2009) 147 progress: additive continuation of 179; nullification through paradigm conflict and lack of consensus 154–5 Public Broadcasting Service (PBS) 141 Putin, Vladimir 67, 77–8, 78–9, 178 Putnam, R 14–16, 28, 30, 35, 46–7, 90, 155, 164 Putnam, R and Bayne, N 14–16 Rajan, Raghuram G 2, 10, 131, 137 Rand, Ayn 130 Rasmussen, Lars 88–9 Rasmussen Reports (2008) 33 Raustiala, K 127, 136 Raustiala, K and Victor, D.G 102, 128 Reagan, administration of President Ronald 71 real-estate-driven boom in US 2–3 real interest rates below-zero per-cent 69 reform wave: apogee at 2009 G20 summits 51–3; phases of 51–2; regulatory reform as wave 135; regulatory reform wave 19; transnational community, opportunity and 168; worldview shift and 82–3 reformist zeal at G20 2009 summits 5, 44–63; activism, crisis response and 44; architectural redesign and reform 44; big numbers, ‘shock and awe’ of 47–8; big solutions, need for 45; Brown, requirements of G20 summits of Prime Minister Gordon 45; clear deliverables in London 47–9; collective urgency for action 45; constructs and goals, Obama and implementation of 60; diplomatic, economic and FSB technical reform waves 52; economic threat, financial crisis and 44; emerging countries, voices of 53; exit speeds from crises 60; financial reform: identification of deliverables for 48–9; redesign for 45–7; Financial Stability Board (FSB): creation of 44, 48; role of 55–9; global economic imbalances 50–51; global financial architecture 54–9, 62–3; international financial institutions (IFIs), boost for resources of 47; International Monetary Fund (IMF), reform of 49; international monetary system, crisis and 61; London declaration, reactions to 49; London summit (April) 44, 45–6, 47–9; market panic 44; maximal opportunity, Brown’s initiative at moment of 60; mutual assessment process (MAP) 51; paradigm limits and boundaries 60–61; paradigm shift: beginnings of 59–63; Kuhn and process of 46; lasting and consequential nature of 61–2; phases of reform wave 51–2; Pittsburgh summit (September) 44, 46, 50–51; reform wave, apogee of 51–3; self-examination and reform, critical space for 46–7; state power, reassertion of 44; voting power, rebalance of voice and 44 regional consultative groupings (RCGs) 109 regulatory narrative, Anglo-American domination of regulatory paradigm, possible futures for 176–82 regulatory reality, central bankers in defence of 174–5 regulatory shift, standards and fluid limits of 153–4 resources: Financial Stability Board (FSB) 98, 110; G20 leaders’ forum 38–9 Reuters News 50 www.ebook3000.com Index On the Revolutions of Heavenly Spheres (Copernicus) 8, 152, 171 Reynolds, D 31 Rhoter, L 29 Rieffel, L 25 risk aversion 182 Rogelj, J., Nabel, J., Chen, C., Hare, W., Markmann, K., Meinshausen, M., Schaeffer, M., Macey, K and Holne, N 127 Rogoff, K and Reinhart, C 2, 8, 26 Royal Bank of Scotland (RBS) Ruggie, J.G Run on the Rock (UK House of Commons, 2008) 46 Russia: Crimea, tensions of Russian annexation of 67, 79, 88; foreign policy clashes with 178–9; presidency and summit (September, 2013) 5, 67–8, 69, 77–8; Ukraine, Russian action in 79, 88; West and, rising diplomatic dispute between 79 Sanger, D 73 Sarkozy, Nicolas 25, 26, 30, 34, 49, 51, 68, 70, 76 scandals in banking, continuing revelation of 175 Schiller, R.L secretariat (FSB) 110 Securities and Exchange Commission (US, SEC) 54, 145 self-examination and reform, critical space for 46–7 self-regulation, criticism of 34 Seoul summit (November, 2010) 66–7, 71–2 shadow banking: progress on 170; regulation of 148–50 shock of financial crisis, policy options in face of 96–7 Silverman, D 13 Skogstad, G 11, 28, 99 Slaughter, A.M 118 Smaghi, L.B 99, 100, 102 Snowden, Edward 67, 78 societal and cultural currents 173 Soederberg, S 85 Soros, G 12 sovereignty, legitimacy and 88–9 Spain, economic contraction in special purpose entities (SPEs) 148 St Petersburg summit (September, 2013) 5, 67–8, 69, 77–8 195 standard-setting bodies (FSB) 109 standing committees (FSB) 108–9 state authority, reassertion of 29, 31, 44; collective state and central bank control 101–2; paradigm shift and 172–3, 182 state obligations, dealing with lack of treaty basis for 111 state power: financial liberalization and 1; reassertion of 29, 31, 44; state-to-state power-based diplomacy, reversion to 91–2 Steering Committee (FSB) 107–8; finance ministry inclusion in membership of 114; institutional dominance of 114–15; membership of, evolving state of 113–15 Stevens, G 31 Stiglitz, Joseph 1, 9, 12, 27, 96, 163 Strange, S 1, 9, 28 Strauss-Kahn, Dominique 32, 50, 57 structured investment vehicles (SIVs) 148 Subacchi, P 3, 50, 56 Subacchi, P and Cooper, A.F 35, 82, 171 Subramanian, A 29 success, definition of 126 Summers, Larry 48, 73 summit presidency 37 summitry as process 27–9 surplus and deficit countries, emergence of splits between 70 Swiss National Bank 139 Taleb, N 10, 149 Tarullo, D 132, 142 tax avoidance problem 78 technical agencies, participation of 32 technical-level policy consensus 68–9 technocratic leaderships, common concerns of 66 The Telegraph 79 Tett, G 1, Thatcher, Margaret 20, 82, 152–3, 155, 156, 173; Thatcherite revolution 82, 124, 171 third-order changes 6, 28, 61–2, 72, 85, 92; creation of FSB and institutional structure 98, 103, 105, 110, 120; paradigm shift, crises and 11, 12, 17, 18, 19; paradigm shift, evolution of 167–8, 171, 180; policy outcomes for FSB 124, 125, 128, 129, 131, 135, 148, 151, 152, 155 196 Index third-order institutional nexus, FSB as 167–8 Thorne, R 109 ‘too big to fail’ (TBTF) problem, difficulties of 140, 143–4, 145–6, 153–4, 169–70 Toronto summit (June, 2010) 66, 69–70 total loss-absorbing capital (TLAC): new standard for 79–80; next wave of reform? 145–6; proposal concerning 170 transparency: paradigm shift and improvements in 179–80; weakness in new FSB structure 116–17 Traub, J 26 Trichet, Jean-Claude 28, 36, 101, 106, 116, 133, 181 Trioka of leadership 39, 75–6 Troubled Asset Relief Program (TARP) 25, 32 Tsingou, E 117, 166 Tucker, Paul 132, 174 Turkey’s G20 presidency (2015) 87 Turner, Adair 3, 10, 55, 99, 101, 132, 137, 139 Turner Review (2009) 46 UKPolling 34 Ukraine, Russian action in 79, 88 United Kingdom, economic contraction in United States: China and, problems between 87; economic contraction in 3; imbalances narrative, Chinese rejection of 71–2; summitry and position of 29 US News 173 Vestergaard, J 88 Vestergaard, J and Wade, R 88–9 Vickers Commission Report (2011) 139 Volcker, Paul A 10, 46, 130, 140, 146, 177 voter anger at bankers 173–4 Wade, R 9, 11, 12, 68, 163 Wall Street Journal 174 Walter, S 137 Washington G20 summit (November, 2008): decisions embedded within declaration from 32–3; depth of content within declaration from 33–4; importance of 27–8, 34–6; paradigm shift resulting from 20, 164; results from 30, 32–4, 35 Watanagase, T 100 Weber, Axel 99, 101 Weir, M and Skocpol, T 12, 28 Weisman, J and Macdonald, A 49 White, W 10 White House 31, 79 Williamson, J Wilson, C.A 12, 28, 163 Wolf, M 151 working groups within FSB 109 World Bank 98, 109, 116, 117, 120n2; resource boost for 32 World Trade Organization (WTO) 111; trade facilitation deal 78 worldview: Anglo-Saxon view 2, 3; crises and alterations in 166–7; crises and altered worldview following 166–7; neoliberal view 2, 3, 11, 81; paradigmatic shift in, creation of new normal and 80–81; reform wave, worldview shift and 82–3 Wright, W 112 Yellen, Janet 174 www.ebook3000.com ... Brincat 62 The Redesign of the Global Financial Architecture The return of state authority Stuart P M Mackintosh 63 Markets and Development Civil society, citizens and the politics of neoliberalism.. .The Redesign of the Global Financial Architecture In 2007–2008 the global financial and economic system was in turmoil This volume focuses on how the global financial architecture was redesigned... available from the British Library Library of Congress Cataloging in Publication Data Mackintosh, Stuart P M The redesign of the global financial architecture: the return of state authority/ Stuart