In Discipline in the Global Economy, Jakob Vestergaard investigates
the currently prevailing regulation of international finance,
launched in response to the financial crises of the 1990's. At the
core of this approach is a set of standards of 'best practice',
ranging from banking supervision to corporate governance.
Vestergaard argues that although these standards are presented as
'international', they comprise a norm for the 'proper' organization
and regulation of economies which is intimately related to the
Anglo-American model of capitalism. With this approach to the
regulation of international finance, previous deregulation policies
were replaced by a comprehensive system for the global disciplining
of economies. This is a remarkable, if not paradoxical, occurrence
in what is allegedly the heyday of neoliberalism and 'free market
economy'. Moreover, this mode of international financial regulation
has proved ineffective, if not counter-productive, in terms of its
objective to enhance the stability and resilience of the
international financial system. Only by abandoning 'laissez-fairy
tales' about liberalism may we begin to understand our present
predicament- and open a space for critical thinking on modes of
international economic governance that are at the same time more
conducive to financial stability and more in line with the ethos of
liberalism.
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