Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

G20 Toronto summit unlikely to achieve major reform

12.05.2010
Coordination of financial regulations makes sense for countries trying to minimize the effects of global financial uncertainty, says a paper from the Rotman School of Management.

But the “prospect for effective cooperation is not encouraging,” says the paper, adding the G20’s size “may be a problem.” That’s because the more countries there are trying to coordinate their policies, and the more varied their financial structures, the less likely they are to get agreement, reducing the chances of successfully harmonizing regulations governing the group’s financial institutions.

Based on that, “we should not expect too much of the Toronto summit,” of the G20, scheduled for June 26 and 27, says Paul Masson, the study’s co-author. Prof. Masson is a research fellow and adjunct professor at the Rotman School, and is a former adviser to the Bank of Canada as well as to the International Monetary Fund.

“Many regulatory issues are complex and need to be adapted to individual countries’ systems.” Prof. Masson says. “Harmonization may not be the best solution in all cases given the structural differences.”

Using two different mathematical models, Prof. Masson and co-author John C. Pattison show that coordination is a logical choice to deal with growing uncertainty as well as when countries are trying to balance their interests in maintaining economic stability while keeping their banks competitive. When the economy is uncertain, coordination allows policy-makers to make choices minimizing potential spillover effects from one country to another. It also works when countries are trying to balance their interests during a crisis, because countries put more value on financial stability due to suffering a common shock.

However, without an enforcement mechanism, cooperation “may break down,” the authors point out, and once the current crisis is over, “governments may well no longer possess the political will to finish the job.”

The G20 was created in 1999 and represents established and emerging market economies. It has replaced the G7 and G8 as the main forum for international economic cooperation in response to the toxic spillover effects of the 2008 financial meltdown.

The complete study is available at: http://www.rotman.utoronto.ca/newthinking/G20reforms.pdf .

For the latest thinking on business, management and economics from the Rotman School of Management, visit http://www.rotman.utoronto.ca/NewThinking .

The Rotman School of Management at the University of Toronto is redesigning business education for the 21st century with a curriculum based on Integrative Thinking. Located in the world’s most diverse city, the Rotman School fosters a new way to think that enables the design of creative business solutions. The School is currently raising $200 million to ensure Canada has the world-class business school it deserves. For more information, visit http://www.rotman.utoronto.ca.

Ken McGuffin
Manager, Media Relations
Rotman School of Management
Voice: (416) 946-3818
E-mail: mcguffin@rotman.utoronto.ca

Ken McGuffin | EurekAlert!
Further information:
http://www.utoronto.ca

More articles from Studies and Analyses:

nachricht Real-time feedback helps save energy and water
08.02.2017 | Otto-Friedrich-Universität Bamberg

nachricht The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Breakthrough with a chain of gold atoms

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

In the field of nanoscience, an international team of physicists with participants from Konstanz has achieved a breakthrough in understanding heat transport

Im Focus: DNA repair: a new letter in the cell alphabet

Results reveal how discoveries may be hidden in scientific “blind spots”

Cells need to repair damaged DNA in our genes to prevent the development of cancer and other diseases. Our cells therefore activate and send “repair-proteins”...

Im Focus: Dresdner scientists print tomorrow’s world

The Fraunhofer IWS Dresden and Technische Universität Dresden inaugurated their jointly operated Center for Additive Manufacturing Dresden (AMCD) with a festive ceremony on February 7, 2017. Scientists from various disciplines perform research on materials, additive manufacturing processes and innovative technologies, which build up components in a layer by layer process. This technology opens up new horizons for component design and combinations of functions. For example during fabrication, electrical conductors and sensors are already able to be additively manufactured into components. They provide information about stress conditions of a product during operation.

The 3D-printing technology, or additive manufacturing as it is often called, has long made the step out of scientific research laboratories into industrial...

Im Focus: Mimicking nature's cellular architectures via 3-D printing

Research offers new level of control over the structure of 3-D printed materials

Nature does amazing things with limited design materials. Grass, for example, can support its own weight, resist strong wind loads, and recover after being...

Im Focus: Three Magnetic States for Each Hole

Nanometer-scale magnetic perforated grids could create new possibilities for computing. Together with international colleagues, scientists from the Helmholtz Zentrum Dresden-Rossendorf (HZDR) have shown how a cobalt grid can be reliably programmed at room temperature. In addition they discovered that for every hole ("antidot") three magnetic states can be configured. The results have been published in the journal "Scientific Reports".

Physicist Dr. Rantej Bali from the HZDR, together with scientists from Singapore and Australia, designed a special grid structure in a thin layer of cobalt in...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Booth and panel discussion – The Lindau Nobel Laureate Meetings at the AAAS 2017 Annual Meeting

13.02.2017 | Event News

Complex Loading versus Hidden Reserves

10.02.2017 | Event News

International Conference on Crystal Growth in Freiburg

09.02.2017 | Event News

 
Latest News

Microhotplates for a smart gas sensor

22.02.2017 | Power and Electrical Engineering

Scientists unlock ability to generate new sensory hair cells

22.02.2017 | Life Sciences

Prediction: More gas-giants will be found orbiting Sun-like stars

22.02.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>