Can standards and codes prevent financial crises?
Can standards and codes prevent financial crises? (with Schneider, B.) ODIOverseas Development Institute (London) Opinion 7, November 2003
Gordon Brown has long argued that one of the main ways to manage the world economy better and avoid financial crises is to define and implement international “standards and codes”. These are statements of best practice in areas like fiscal transparency, banking supervision and accounting standards. They provide reassurance to members of the international financial ‘club’ that everyone is playing by broadly the same rules, or at least not exposing the club as a whole to unreasonable risk. In 1999, Gordon Brown described standards and codes as ‘the foundation of the new architecture’. ‘It is only’, he said, ‘by taking the right actions in their own jurisdictions that the countries of the international financial community can deliver financial stability at global level. It is only in this way that we can achieve global stability consistent with national sovereignty.’...... (see link in title for full article)