Playing with Fire : Deepened financial integration and changing vulnerabilities of the global south Author: Yilmaz Akyuz (Book Review by Andrew Cornford)

Publisher: Oxford University Press ISBN: 9780198797173 About the Book Starting in the early 1990s many emerging and developing economies (EDEs) liberalized their capital accounts, allowing greater freedom for international lenders and investors to enter their markets as well as for their residents to borrow and invest in international financial markets. Despite recurrent crises, liberalization has continued and in fact accelerated in the new millennium. Integration has been greatly facilitated by progressively looser monetary policy in the United States, notably the policies that culminated in debt crises in the United States and Europe and the ultra-easy monetary policy adopted in response.…

Playing With Fire : Deepened Financial Integration And Changing Vulnerabilities Of The Global South Author: Yilmaz Akyuz  (Book Review By Andrew Cornford)

Advice and Dissent Author: Y.V. Reddy (Book Review by : Andrew Cornford)

Publisher: Harper Collins Language: English P-ISBN: 978-935-264-300-4;  E-ISBN: 978-93-5264-305-9 Book Review by : Andrew Cornford Introduction Of my encounters with Yaga Venugopal Reddy (YVR) after he stepped down from his position as Governor of the Reserve Bank of India one stands out strongly in my memory[1]. This was at the inaugural conference of the Institute for New Economic Thinking (INET) in Cambridge in the spring of 2010.In a session on the agenda for financial reform in the aftermath of the Global Financial Crisis (GFC) Charles Dallara, then Managing Director of the Institute of International Finance, an industry body with a membership…

Advice And Dissent Author: Y.V. Reddy    (Book Review By : Andrew Cornford)

Trade Finance: Effects Of The Basel Capital Framework and Other Regulatory Developments Andrew Cornford

The impact of the Basel III capital adequacy framework requires detailed analysis. Have the rules relating to trade finance slowed down world trade? What are the implications for money laundering, and changes in banks' operations in response to global environmental challenges? Trade_Finance (Download the full text in PDF format)

Break up the Banks: A practical guide to stopping the next global financial meltdown Andrew Cornford

Banking reforms to regulate the financial sector have broadly remained inadequate. In the book reviewed, Shirreff proposes the legal separation of banking activities into three groups, a return to unlimited liability for partners in investment banks and caps on total remuneration as the radical and effective steps needed to stabilise the sector. He also favours scrapping of Basel I and II norms and the application of a financial transaction tax. The global applicability and acceptance of these proposals, however, remains uncertain. Break_Up_Banks (Download the full text in PDF format)

New In-house Estimates of the Impact of the Basel Capital Framework Andrew Cornford

The state of play in the effort to achieve a final revised version of the Basel III capital framework for banks (now widely and understandably renamed Basel IV) is currently far from clear. The word from the Basel institutions themselves is that the goal is close to attainment. In mid-September the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of the Basel Committee on Banking Supervision (BCBS), issued a statement endorsing the direction of Basel III. This was accompanied by a statement of the chairman of the BCBS that the long process of post-GFC reforms…

Revised Version of India’s New Model Bilateral Investment Treaty Andrew Cornford

Introduction The initial 2015 draft of a new model Indian bilateral investment treaty contained stringent provisions concerning the definition of investment covered, non-applicability, the obligations of the two parties in the case of claims, and exceptions. [The initial draft was reviewed in SUNS 8094, 17 September and SUNS 8095, 18 September]. These provisions were criticised at the time as likely to hinder foreign direct investment and thus as counterproductive. Revisions of the model in a new draft have introduced greater flexibility under some but not all of these headings and have also included some extensions of rules in the initial…

Coverage of Prudential Measures in the GATS: Some conclusions of a WTO Appellate Body Andrew Cornford

Since issuance of the framework of the General Agreement on Trade in Services (GATS) as part of the results of the Uruguay Round negotiations, there has been a continuing controversy as to the scope which it provides for financial regulation. The principal focus of this controversy has been the so-called of the “prudential carve-out” or “prudential exception” of paragraph 2(a) of the Annex on Financial services. This provides latitude under GATS rules for measures taken by members for prudential reasons affecting their financial sectors, notwithstanding other provisions of the GATS. A recent dispute between Panama and Argentina was the occasion…

Avinash Persaud’s Reinvention of Financial Regulation Andrew Cornford

The work on financial regulation of governments and intergovernmental organisation rolls on with final outcomes promised but seemingly always just over the horizon. Overviews are few owing no doubt both to the complexity of the agenda’s components and to the difficulty of analysing a target still subject to continuous revision. So the new book of Avinash Persaud (Persaud, 2015), which attempts such an overview, is a particularly welcome event, though his assessment is inevitably provisional. Persaud’s career has spanned executive positions at a number of major banks, teaching and managerial positions in academe, and analysis and proposals concerning the financial…

Dispute Settlement in International Investment Agreements and the Rules of an Indian Model Bilateral Investment Treaty Andrew Cornford

Coverage and procedures for dispute settlement in international agreements on investment and trade are proving increasingly controversial. The current controversy reflects contentious issues in two ongoing multilateral negotiations, on the TPP (Trans Pacific Partnership) and TTIP (Transatlantic Trade and Investment Partnership). The targets of contention include provisions designed to achieve regulatory convergence among the participants in the negotiations regarding subjects such as environmental regulation and intellectual property rights. Moreover the rules agreed under these agreements will increase the scope for private investors to bring suits against governments for future losses imputed to changes in regulation and other official actions under…