unless we achieve a truly common stance in the eu in favour of real reform achieving adequate global rules for the financial markets becomes much harder
sensible people would say that a massive failure of both regulation and oversight together with revealed flaws of an overly simplistic economic paradigm provide an indubitable answer to what to do
but some still argue that soft regulations should be the norm of the new system
in my view they are wrong whether they honestly think so or are driven by parochial interests
one of keynes intellectual legacies that highly volatile capital flows are inimical to trade and prosperity has shown its relevance in the current huge mess and other crises including in emerging markets
for decades now a mantra has been heard worldwide that not much can be done in national policy-making because global markets would punish a government
but is the complexion of global financial markets god-given
are not global markets aside from their technological drivers also the product of human beings decisions to set rules for finance trade and investment
the claim that nothing can be done about finance when it brings about misery is unconvincing
much can be done in regulating all financial entities including hedge funds and private equity funds constraining leverage dealing with pro-cyclicality and accounting coordinating policies better dealing with the rating agencies
the decline of a paradigm which equates market economies with no regulations has to be seen in conjunction with a rising multi-polar economic world in the attempt to forge a new international financial system
on the latter hinges the fate of an open world economic system
unless we do the right things now we run the risk of crippling our liberal democracies
i hope that the new american administration will be forthcoming in this respect
but we at home in europe have to rise to the momentousness of this period
