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National Suspicions Undermine Global Financial Cooperation
Article

National Suspicions Undermine Global Financial Cooperation

Douglas J. Elliott
Brookings Institution Press, 2013
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Editorial Rating

6

Qualities

  • Overview
  • Visionary

Recommendation

This brief article offers valuable criticism of world leaders who are backtracking on their promises to repair and improve the financial system via cooperation. Douglas J. Elliott, a former investment banker, explains how nations are looking out for their own interests instead of collaborating to ensure reforms and rules attain a high standard. He highlights the risk of complacency now that the immediate danger of a total financial meltdown has passed. Though it is somewhat vague on details, getAbstract recommends this compact appraisal of the lack of international cooperation in financial regulation to policy makers and investors.

Take-Aways

  • National interests and a lack of trust stand in the way of the international collaboration required to fix the global financial system.
  • Basel III, which established rules to ensure bank liquidity, is an improvement on previous accords, but the divide within the Basel Committee is undermining its success.
  • The US, UK and others focus on meeting long-term goals and keeping standards high, while Germany, France, Japan and others aim to help banks in the short term.

About the Author

Douglas J. Elliott was an investment banker for twenty years. He is now a fellow of economic studies at the Brookings Institution.

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