8/13/2023 0 Comments Monetary freedom definitionThe role of public international law in monetary affairs seems to have reached its limits since the entry into force of the second amendment to the articles of agreement of the International Monetary Fund ( imf or the Fund). The main causes of this imbalance are attributable to the current design of the international monetary order, a system mainly based on monetary sovereignty attributes of the states and soft international governance. That is, policies on national and regional levels prevail over multilateral and international solutions in monetary affairs. This book also remarks that since the collapse of the rule-based system of ‘Bretton Woods’ 5 in the 1970’s, there has been an imbalance among the different domains dealing with monetary stability. 4 Hence, this book recognises that there are overlapping jurisdictions dealing with monetary stability at the different levels of governance (national, regional and international) and that they intersect and influence each other. 3 In doing so, it argues that monetary stability is both an indisputable public good at the domestic level and an essential global public good ( gpg) for the international community. This volume studies in particular the role of law and institutions in the pursuit of monetary stability. It is based on a combination of public international law, regulatory law and the interdisciplinary interchange between law, history and economics. Methodologically, this book takes a specific legal approach. The gfc not only revealed the structural weaknesses of the international monetary system ( ims) but also stressed the need for reform with the intention to promote global stability. The ‘free market paradigm’ that promoted self-adjusting and efficient markets for the last 30 years was abandoned with the onset of the global financial crisis of 2007–2009 ( gfc), 2 which gave rise to a more interventionist approach to the economy with increased regulation. In the last decade, the study of international monetary law has regained relevance. The opportunity for the emergence of a fully fledged international monetary order is here at stake. The G20 or a "G" of similar limited size, under the proposed renovated architecture, would be in a powerful position to promote the global common good, and to make it prevail, including, at times, against a narrow, short-term interpretation of national Zinterests. This should lead every country to look with a renewed sense of responsibility and discipline to the system as a whole. International cooperation is, in the long run, a necessary ingredient in the search for national prosperity. It is a system where all countries recognize their stake in global stability and accept that near-term national objectives may, if needed, be constrained by the global interest. It is a system that maintains freedom of trade and current payments and that allows sharing more widely the benefits of financial globalization, appropriately regulated. The international monetary system to which we aspire is one that preserves the gains of the past sixty-five years, without succumbing to its own instability.
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