Chapter

International Cooperation

Youssef Cassis

in Crises and Opportunities

Published in print April 2011 | ISBN: 9780199600861
Published online May 2011 | e-ISBN: 9780191724930 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199600861.003.0007
International Cooperation

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International cooperation has rightly been credited for helping to prevent a collapse of the international financial system. The high point was the decision on 12 October 2008 by France, Germany, and the other members of the Eurozone to follow Britain's rescue plan and simultaneously announce measures to recapitalize their banks and guarantee loans, and then the adoption of similar measures by the United States. Global coordination was clearly the order of the day, with the G20 replacing the G8 as the key forum for discussing the economic crisis and meetings held in Washington in November 2008 and London in April 2009. On the other hand, international cooperation has been blamed for its inability radically to address the shortcomings of a system unable to prevent a financial catastrophe, with persistent disagreements about, among other things, global regulation, financial transaction taxes, or bonus taxes. International cooperation has been one of the hallmarks of the post-war era, in sharp contrast to its failure in the inter-war years, often seen as one of the causes of the severity of the Great Depression. Yet all financial crises since the late 19th century have required the intervention of actors from more than a single country. This chapter considers the nature of these interventions and the extent of their success in both a short- and long-term perspective.

Keywords: financial crisis; international financial system; G20; international organizations; central bank cooperation

Chapter.  7533 words. 

Subjects: Financial Institutions and Services

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