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Bernard Schwartz

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Eatwell, John and Taylor, Lance (2000) Global Finance at Risk: The Case for International
     Regulation. New York: New Press.

Expansion of finance in industrialized economies, including that of the nineteenth-century United States, was accompanied by the same kind of turbulence now afflicting Asia, Russia, and Latin America. Then, the solution was to establish national banking and securities regulators, create deposit insurance, and empower lenders of last resort. But in our increasingly globalized times, an account opened at a local bank can be based on bad debt from anywhere in the world, including places outside the jurisdiction of those national agencies. And when banks fail, it is not only their account holders who suffer, but all of us. This is why, argue John Eatwell and Lance Taylor in this timely and urgent book, effective regulation of international finance is crucial to the economic health of all nations. Global Finance at Risk casts a welcome light on the deepening intricacies of world financial systems.

SYNOPSIS
As a solution to what they see as a financial crisis, economists Eatwell (Cambridge U.) and Taylor (New School U., New York) propose a World Financial Authority with powers to establish worldwide best- practice financial regulation and risk management. In the 19th century when the US was experiencing the same kind of growth and instability now hitting Asia, Russia, and Latin America, they argue, national banking and securities regulators, deposit insurance, and lenders of last resort were established, and the same should be done on the global level now. Annotation c. Book News, Inc., Portland, OR.