Limitations to States’ Sovereignty and Dispute Settlement
Elgar International Economic Law series
In our times of change, international economic law studies are gaining renewed relevance. In fact, after the 2007–2010 global financial crisis, the free market paradigm is giving leeway to a new trend towards a more regulated economy and a widespread consensus is arising on the need to reform both the global financial system and the international monetary system in order to reduce their inherent instability. This book investigates the role of international economic law (IEL) in ensuring global financial stability and international monetary stability, which are described as global public goods. It is argued that IEL institutions and rules can contribute significantly to the achievement of global public goods, providing the institutional and legal framework for the solution of collective action problems at international level. Chapter 1 gives the necessary background to the main theme of the book. It gives a brief account of the evolution of the world economy and of the causes of the 2007–2010 global financial crisis. It introduces the theory of global public goods, bringing global financial stability and international monetary stability into their framework. It reviews the definition of IEL and identifies three problem areas for which IEL rules are considered particularly relevant: exchange restrictions and the liberalization of payments and transfers for current international transactions; capital controls and the liberalization of cross-border capital flows; as well as currency manipulations and the stability of exchange rates. The chapter concludes with an overview of the doctrine of norm conflict in IEL. Under the methodological...