Introduction: Theory, International Institutions and Global Finance
What holds our increasingly globalized world together? International competition and conflict are intense. The world is divided into mutually distrustful sovereign states. Instead of fragmentation and chaos, however, there is a surprising degree of regularity and order. This book seeks better to understand how such regularity and order comes about in global financial markets. These markets are often seen as uncontrollable and plagued by recurring instability. As we shall see, this image is misleading. There are strong sets of social institutions which organize these markets and which themselves display identifiable patterns as they evolve. Understanding these institutions and patterns helps us better understand both global finance and the sources of international order more generally. This book will focus not only on the two most important interstate institutions for regulating international financial firms, the Basle Committee on Banking Supervision, and the International Organization of Securities Commissions, but also on the private international institutions that play a central role in organizing international financial markets.
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