Ideas towards a New International Financial Architecture? Edited by: Oscar Ugarteche, Alicia Puyana and Maria Alejandra Madi


About the Book

Published on 17 Dec 2015 by WEA Books

The book is the outcome of an e-conference held between May and July 2015 on ideas towards the new international financial architecture (IFA) with the people from the World Economics Association. It reviews the need for a new international financial architecture understood as the sum of institutions, instruments, rules and practices.

The first part of the book has a text by Carlos Marichal with a review of how the two great crises of the XXth century were investigated to try and find what went wrong institutionally speaking. Constantinos Passaris then suggests a new international financial governance model for the new century and Gerson Lima argues about the nonsense of public debt, particularly in times of distress. The second part of the book revises the IFA and looks into the existing financing mechanisms and what should be either appearing coming up as part of the reinvention of the international financial complex. The conclusion, by Alicia Puyana and Oscar Ugarteche, blends the problems of development with those of financial architecture. They conclude that, Global financial problems posed by new instruments used worldwide and the increased contagion between markets, epidemics as they are referred, require new global institutions that reflect the new economic power structure. With Europe double counted in the G20 and the G7 countries keeping majority votes at the IMF while they really express a grouping of highly indebted, low growing countries that are losing weight in the international sphere, IFIs have little chance to regain legitimacy. The forcing of the IMF role is only pushing its credibility downwards. Regional responses are emerging and will continue doing so, but this should be a thought out process and not only the addition of spontaneous regional decisions, or in the BRICS case, a grouping decision. There is more information and more financial instruments but there is also an increased demand for more democracy at the international financial sphere. Blocking new global institutions for new market ones, does not take into account the new international balance of economic power. A new world is possible and necessary.

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