Publication

The global regulation of financial markets, agreed upon at previous G-20 summits, was intended to make the international financial system more stable and more resilient against future crises. Alas, the expectations were unfulfilled. This paper examines why countries seem to lose faith in multilateral approaches to preventing crises. It argues that the structural crisis in current global regulation is not least the result of an asymmetric sovereignty in financial politics: states possess only marginal influence on international financial markets, but they are liable in times of crisis. This results in a re-nationalization of financial policies. At the same time, the increasingly critical perception of globalization complicates the further evolution of the multilateral trade order.