Global financial regulation: have post-crisis initiatives made a difference?

In a Development Policy Seminar held in New York yesterday, Nicolas V?ron, Senior Fellow at Bruegel in Brussels and Visiting Fellow from the Peterson Institute for International Economics, argued that the effectiveness of post-crisis reforms in financial regulation in making global finance more stable is not so far proven. In his presentation, he showed that unintended consequences of the reforms are appearing gradually, even as their initial implementation is still unfinished. In his view, the G20 has established neither an adequate institutional infrastructure nor a consistent policy vision for a globally integrated financial system. This shortcoming justifies increasing concerns about economically harmful market fragmentation. One key aim, according to V?ron, should be to make international regulatory bodies more representative of the rapidly-changing geography of global finance, not only in terms of their membership but also of their leadership and location.