Elgar original reference
Edited by Kern Alexander and Rahul Dhumale
Kern Alexander ‘Feasts to which many contribute may excel those provided at one man’s expense.’ Aristotle, The Politics Although the synoptic perspective of a single author is often preferred by critics to the collective expertise of an edited book, Aristotle’s authority nonetheless can be invoked to justify a collective work on a topic as complex and wide-ranging as international financial market regulation. Indeed, a comprehensive study of international financial regulation would necessarily involve a multi-disciplinary analysis of the economic, financial, legal and political issues that have so perplexed academics, policymakers and practitioners since the global credit and financial crisis began in August 2007. Any such analysis would be lacking if it did not address how the prudential regulation of financial markets requires continuous adaptation to the evolution of financial markets themselves: in instruments traded, in institutional structures, and in the degrees of integration of national and international markets. In the past decade the speed of change has accelerated. This has been particularly evident in the recent financial crisis that was precipitated in 2007 by the sub-prime mortgage problems in the United States. The resulting liquidity crisis in wholesale funding markets transformed itself into a solvency crisis for many institutions and countries while spreading to Europe and throughout the world. In terms of institutions and market structures, these events demonstrate the power of contagion in today’s increasingly integrated financial markets. In terms of policy analysis, it demonstrated that modern risk modelling does not adequately represent the behaviour of market participants – behaviour...