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Original Articles

Review Article Moralizing finance: the new financial architecture as ethical discourse

Pages 579-603 | Published online: 01 Dec 2010

References

  • The debate itself has also produced a number of critical commentaries, to which this paper seeks to contribute, including: Andre Cartapanis and Michel Herland (2002) “The Reconstruction of the International Financial Architecture: Keynes' Revenge?', Review of International Political Economy, 9(2) Yung Chul Park and Yunjong Wang (2001) Reform of the International Financial System and Institutions in Light of the Asian Financial Crisis, New York: United Nations Conference on Trade and Development, Susanne Soederberg (2002) ‘On the Contradictions of the New International Financial Architecture: Another Procrustean Bed for Emerging Markets?’, Third World Quarterly, 23(4), Yilmaz Akyuz (2000) The Debate on the International Financial Architecture: Reforming the Reformers, New York: United Nations Conference on Trade and Development.
  • Institutional economists emphasize the ways in which informational asymmetries and transactions costs undermine the ability of the market to function effectively - thus leading to market failure. Some key articles on the ‘new economics of organization’ or ‘new institutional economies’ include: Terry Moe (1984) The New Economics of Organization‘, American Journal of Political Science, 28, Oliver Williamson (1975) Markets and Hierarchies: Analysis and Antitrust Implications, New York: Free Press, Oliver Williamson (1985) The Economic Institutions of Capitalism, New York: Free Press, Douglass North (1990) Institutions, Institutional Change and Economic Performance, Cambridge: Cambridge University Press, George Akerlof (1970) The Market for Lemons: Quality Uncertainty and the Market Mechanism’, Quarterly Journal of Economics 84.
  • Rubin , Robert E. 1998 . Strengthening the Architecture of the International Financial System: Remarks at the Brookings Institution , G – 7 . Washington, D.C : US Treasury . Communiqué of the Halifax Summit (Halifax, Canada: Group of 7,1995)
  • On moral judgment, see for example Barbara Herman 1993 The Practice of Moral Judgment Cambridge, Mass Harvard University Press Sabina Lovibond (2002) Ethical Formation, Cambridge, Mass: Harvard University Press
  • This ethical turn in international financial governance can also be seen in several other recent statements from Fund representatives, including: Michel Camdessus (1999) From Crisis to a New Recovery: Excerpts from Selected Addresses by Michel Camdessus, Washington, D.C.: International Monetary Fund, Horst Köhler (2000) In Search of Stability and Broadly-Shared Prosperity: Reform of the International Monetary System, Address at the Meeting with EU Parliamentary Committees, Brussels: International Monetary Fund, Horst Köhler (2001) “The Challenges of Globalization and the Role of the IMF’, Remarks by IMf Managing Director to a meeting with members of the Deutsche Bundestag, Berlin: International Monetary Fund.
  • Vickers , Douglas . 1997 . “ Economics and Ethics: An Introduction to Theory, Institutions, and Policy ” . 6 Westport : Praeger . Also see: David Ricardo (1996) Principles of Political Economy and Taxation, Amherst, NY: Prometheus Books, Leon Walras (1969) Elements of Pure Economics, New York: Kelley
  • Sen , Amartya . 1987 . On Ethics and Economics , 4 Oxford : Blackwell, p .
  • Hirschman , Albert . 1978 . The Passions and the Interests: Political Arguments for Capitalism before Its Triumph , Princeton : Princeton University Press .
  • Feldstein , Martin . 1998 . ‘Refocusing the IMF’ , Foreign Affairs, March/April .
  • Singh “Asian Capitalism and the Financial Crisis 10, 14 .
  • Kenen borrows this term from an article by Martin Wolf: Martin Wolf 1998 Caging the Bankers Financial Times 20 January .
  • Jonathan Kirshner 2000 “The Study of Money’ World Politics 52 .
  • Dewatripont , Mathias and Tirole , Jean . 1994 . The Prudential Regulation of Banks , Cambridge , Mass : MIT Press . See, for example
  • Adam Smith 1993 An Inquiry into the Nature and Causes of the Wealth of Nations Indianapolis Hackett Book II, Chapter 3. Also see Laurence Dickey's excellent discussion of the relationship between Smith's ethics and economics in Appendix I of this edition.
  • Eichengreen in fact uses the phrase ‘moral suasion’ to describe the process of resolving the Korean debt crisis in: Barry Eichengreen (2000) Is Greater Private Sector Burden Sharing Impossible? Peter B. Kenen and Alexander K. Swoboda Reforming the International Monetary and Financial System Washington International Monetary Fund .
  • Qn moral development, see for example: Donald R. C. Reed 1997 Folloiving Kohlberg: Liberalism and the Practice of Democracy Notre Dame University of Notre Dame Press Lawrence Kohlberg (1981) The Philosophy of Moral Development: Moral Stages and the Idea of Justice, San Francisco: Harper &Row .
  • Robert Wade and Frank Veneroso 1998 “The Asian Crisis: The High Debt Model Versus the Wall Street-Treasury-IMF Complex‘ New Left Review 228 . Also see: Ajiit Singh (1999) ‘“Asian Capitalism” and the Financial Crisis’, in Jonathan Michie and John Grieve Smith Global Instabuity: The Political Economy of Vfarid Economic Governance, London: Routledge, p. 28 .
  • See, for example Allan Meltzer 2000 Report of the International Financial Institutions Advisory Commission Washington, D.C US House of Representatives John Eatwell and Lance Taylor (2000) Global Finance at Risk, New York: The New Press, Joseph Stiglitz (2002) Globalization and Its Discontents, New York: W. W. Norton, Charles Calomiris (1998) The IMF‘s Imprudent Role as Lender of Last Resort’, CATO Journal 17, George Soros (1998) The Crisis of Global Capitalism, New York: Public Affairs Press .
  • Aristotle's Nicomachean Ethics. Trans. Hippocrates G. Apostle. (Grinnell, Iowa: Peripatetic Press, 1984) Book VI (8) pp. 107–8. For a discussion of Aristotle's conception of prudence, see: Pierre Aubenque La Prudence Chez Aristote . Paris Presses Universaires de France 2002 .
  • ‘Building Trust in the Financial Markets’, World Economic Forum, Davos, Switzerland: (2003), available online at: (2/19/03)
  • Köhler , Horst . 2002 . Strengthening the Framework for the Global Economy, a Speech Given on the Occasion of the Award Ceremony of the Konrad Adenauer Foundation Social Market Economy Prize , Berlin : International Monetary Fund .

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