Regulation and the Role of Law in Economic Crisis
This paper contributes to the current debate on responses to the financial crisis and the role of law in paving a way out of recession, by highlighting the persistence of market-centred theories that defined the state-market relationship before the crisis. The paper begins by discussing the concept of regulation itself and discusses the extent to which the ‘credit crunch’ has shaken belief in modern capitalism. The paper then offers a discussion on the relationship of deregulation to financial crisis, arguing that there is a direct link between the receding reach of the state and market instability, drawing analogies with previous instances of market failure, like the Great Depression. On the basis of this connection, a theoretical portrayal of perceptions of the role of law in modern capitalism is attempted, where the main message is that dominant, modern perceptions of the state-market relationship allow a role for regulation but still do not recognise the state as the legitimate author of such regulation, showing a preference for market-led solutions. The paper then tests these findings against state actions in response to the ‘credit crunch’ and concludes by offering the suggestion that while the current financial crisis has shown the limitations of modern capitalism, and while it is possible that a fundamental rethink of the role of the state in the market may take place as a consequence, this rethink has yet to materialise in policy proclamations and government aspirations on a global scale. 
“This financial system is no more! It has ceased to be! ‘It’s expired and gone to meet its maker! ‘It’s a stiff! Bereft of life, it rests in peace! If you hadn’t nailed ‘it to the tax payer’s perch it’d be pushing up the daisies! ‘Its metabolic processes are now ‘istory! ‘It’s off the twig! It’s kicked the bucket, it’s shuffled off its mortal coil, run down the curtain and joined the bleedin’ choir invisible!! THIS IS AN EX-FINANCIAL SYSTEM!!”
(Willem Buiter, 26 November 2008)
The Empire Reloaded
Various contributors ask and discuss: How does the new American Empire work? Who runs it? How stable is it?; What is the new American Empire's impact throughout the world?; What is its influence on gender relations? On the media? On popular culture?
The Mexican financial system: reforms and evolution 1995-2005
The Mexican banking crisis of 1995 contained many of the same characteristics as other banking crises: a massive expansion of credit in a short period of time, poor bank management, supervisory and regulatory loopholes, and a shock (both domestic and external). The perverse incentives created by a quasi-fixed exchange rate regime contributed to the onset of the crisis. However, the weakness of the financial system and loopholes within the regulatory and supervisory frameworks exacerbated its aftermath. The experience has provided important policy lessons. We divide the different factors that triggered the crisis and were responsible for its severity into the following categories: the macroeconomic environment, the incentives’ structure faced by economic agents, and the legal and regulatory framework.