IDEAS home Printed from https://ideas.repec.org/a/taf/cnpexx/v22y2017i5p595-609.html
   My bibliography  Save this article

The political economy of post-crisis international standards for resolving financial institutions

Author

Listed:
  • Lucia Quaglia

Abstract

The development of post-crisis international standards for resolving financial institutions highlights an intriguing puzzle: the European Union (EU), which is often considered as a ‘great financial power’, had a marginal influence in the standard-setting process, which was led by the United States (US) and the United Kingdom (UK). Why? This paper brings together and further develops the concepts of cross-border externalities derived from the hierarchical network structure of the international financial system and domestic regulatory capacity. The US and the UK had the incentives (externalities) to promote and the domestic capacity to shape international standards. By contrast, the EU was mainly exposed to regional (intra-EU) cross-border externalities and lacked regulatory capacity on the matter. Paradoxically, international standards contributed to developing EU resolution capacity by facilitating an agreement on EU (and later on, euro area) rules.

Suggested Citation

  • Lucia Quaglia, 2017. "The political economy of post-crisis international standards for resolving financial institutions," New Political Economy, Taylor & Francis Journals, vol. 22(5), pages 595-609, September.
    • Handle: RePEc:taf:cnpexx:v:22:y:2017:i:5:p:595-609
    DOI: 10.1080/13563467.2017.1270927
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13563467.2017.1270927
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13563467.2017.1270927?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel W. Drezner, 2007. "Bringing the Great Powers Back In, from All Politics Is Global: Explaining International Regulatory Regimes," Introductory Chapters, in: All Politics Is Global: Explaining International Regulatory Regimes, Princeton University Press.
    2. International Monetary Fund, 2011. "People's Republic of China: Financial System Stability Assessment," IMF Staff Country Reports 2011/321, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schuknecht, Ludger & Siegerink, Vincent, 2020. "The political economy of the G20 agenda on financial regulation," European Journal of Political Economy, Elsevier, vol. 65(C).
    2. Stefano Pagliari & Meredith Wilf, 2021. "Regulatory novelty after financial crises: Evidence from international banking and securities standards, 1975–2016," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 933-951, July.
    3. Lucia Quaglia & Aneta Spendzharova, 2017. "Post‐crisis reforms in banking: Regulators at the interface between domestic and international governance," Regulation & Governance, John Wiley & Sons, vol. 11(4), pages 422-437, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gary Goertz & Tony Hak & Jan Dul, 2013. "Ceilings and Floors," Sociological Methods & Research, , vol. 42(1), pages 3-40, February.
    2. Jonas Tallberg & Thomas Sommerer & Theresa Squatrito, 2016. "Democratic memberships in international organizations: Sources of institutional design," The Review of International Organizations, Springer, vol. 11(1), pages 59-87, March.
    3. Sandra Lavenex & Flavia Jurje, 2021. "Opening‐up labor mobility? Rising powers' rulemaking in trade agreements," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 598-615, July.
    4. Lucia Quaglia, 2021. "It Takes Two to Tango: The European Union and the International Governance of Securitization in Finance," Journal of Common Market Studies, Wiley Blackwell, vol. 59(6), pages 1364-1380, November.
    5. Alexander Reisenbichler, 2015. "The domestic sources and power dynamics of regulatory networks: evidence from the financial stability forum," Review of International Political Economy, Taylor & Francis Journals, vol. 22(5), pages 996-1024, October.
    6. Pellegrini, Pablo A., 2013. "What risks and for whom? Argentina's regulatory policies and global commercial interests in GMOs," Technology in Society, Elsevier, vol. 35(2), pages 129-138.
    7. Matthias Thiemann, 2014. "In the Shadow of Basel: How Competitive Politics Bred the Crisis," Review of International Political Economy, Taylor & Francis Journals, vol. 21(6), pages 1203-1239, December.
    8. Jacint Jordana & Xavier Fernández‐i‐Marín & Andrea C. Bianculli, 2018. "Agency proliferation and the globalization of the regulatory state: Introducing a data set on the institutional features of regulatory agencies," Regulation & Governance, John Wiley & Sons, vol. 12(4), pages 524-540, December.
    9. Erica Owen & Stefanie Walter, 2017. "Open economy politics and Brexit: insights, puzzles, and ways forward," Review of International Political Economy, Taylor & Francis Journals, vol. 24(2), pages 179-202, March.
    10. Leonardo Baccini, 2010. "Explaining formation and design of EU trade agreements: The role of transparency and flexibility," European Union Politics, , vol. 11(2), pages 195-217, June.
    11. Lucia Quaglia, 2014. "The European Union, the USA and International Standard Setting by Regulatory Fora in Finance," New Political Economy, Taylor & Francis Journals, vol. 19(3), pages 427-444, May.
    12. J.C. Sharman, 2017. "Illicit Global Wealth Chains after the financial crisis: micro-states and an unusual suspect," Review of International Political Economy, Taylor & Francis Journals, vol. 24(1), pages 30-55, January.
    13. Tony Porter, 2014. "Technical systems and the architecture of transnational business governance interactions," Regulation & Governance, John Wiley & Sons, vol. 8(1), pages 110-125, March.
    14. Daniel Mügge & Bart Stellinga, 2015. "The unstable core of global finance: Contingent valuation and governance of international accounting standards," Regulation & Governance, John Wiley & Sons, vol. 9(1), pages 47-62, March.
    15. Mark Beeson & Jolanta Hewitt, 2022. "Does Multilateralism still Matter? ASEAN and the Arctic Council in Comparative Perspective," Global Policy, London School of Economics and Political Science, vol. 13(2), pages 208-218, May.
    16. Tomas Hellebrandt & Jacob Funk Kirkegaard & Robert Z. Lawrence & Paolo Mauro & Silvia Merler & Sean Miner & Jeffrey J. Schott & Nicolas Veron, . "China's Economic Transformation: Lessons, Impact, and the Path Forward," PIIE Briefings, Peterson Institute for International Economics, number PIIEB15-3, April.
    17. Johannes Matschke, 2021. "National Interests, Spillovers and Macroprudential Coordination," Research Working Paper RWP 21-13, Federal Reserve Bank of Kansas City.
    18. Mark Beeson & Fujian Li, 2016. "China's Place in Regional and Global Governance: A New World Comes Into View," Global Policy, London School of Economics and Political Science, vol. 7(4), pages 491-499, November.
    19. Miss Yinqiu Lu & Tao Sun, 2013. "Local Government Financing Platforms in China: A Fortune or Misfortune?," IMF Working Papers 2013/243, International Monetary Fund.
    20. Abraham Newman & Elliot Posner, 2016. "Transnational feedback, soft law, and preferences in global financial regulation," Review of International Political Economy, Taylor & Francis Journals, vol. 23(1), pages 123-152, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:cnpexx:v:22:y:2017:i:5:p:595-609. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/cnpe20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.