Enhance cooperation between national regulators.
But a monolithic "Global Regulator" is IMHO neither feasible nor desirable.
Like the SEC, CFTC and FSA it would simply become a Single Point of (Regulatory) Failure. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
Cooperation between nations is one thing, but a global regulator? Who's going to volunteer to regulate everybody else? And whose army is going to enforce the regulations?
-- $E(X_t|F_s) = X_s,\quad t > s$
We might yet have WWIII, so don't discount a half decent post-war arrangement. A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
If you're arguing for a system where cooperation arises spontaneously out of self interest (Nash equilibrium), then that's something else. -- $E(X_t|F_s) = X_s,\quad t > s$
Cooperation will arise out of sheer terror.
Watching CNBC. LOL. DOW just opened and its down close to 500 pts already. Will type more. Let me enter this.
Just broke 8000. Now where's the fun in that! - Megatron
I've seen this shit before. Will go for my morning walk, take a nap, and then get up to ... WHAT?
Lest we forget, Georgie the Decider will be speaking soon. Wonder when he'll declare himself ULTIMATE DICTATOR! We don't need no stinking Constitution or Bill of Rights! Now where's the fun in that! - Megatron
The best we can (and should) hope for is the kind of cooperation which depends on and is sustained by self interest.
The increased policing cooperation is a case in point: nations do it because they uniformly gain by controlling their own citizens better, not because they are being told to do it, and not because they are working towards a common worldwide goal to catch criminals.
The international finance problems have to be viewed in this light, too. -- $E(X_t|F_s) = X_s,\quad t > s$
