National governments’ responses to the latest banking crisis confirm once again that some countries play by different rules than others. This double standard is bad for long-term planning within those countries and represents yet another threat to multilateralism.
PRINCETON – A relatively small-scale banking crisis has been sufficient to demonstrate the fragility of multilateralism today. Bank failures in the United States and Europe have upended expectations, because governments did not even pretend to be following any shared rulebook in handling the fallout. While the world’s banking system is in better shape than it was just before the 2008 financial crisis, the mechanisms established over the past 15 years to cope with financial strain have proved insufficient.
PRINCETON – A relatively small-scale banking crisis has been sufficient to demonstrate the fragility of multilateralism today. Bank failures in the United States and Europe have upended expectations, because governments did not even pretend to be following any shared rulebook in handling the fallout. While the world’s banking system is in better shape than it was just before the 2008 financial crisis, the mechanisms established over the past 15 years to cope with financial strain have proved insufficient.