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Instead, there are various areas of regulation performed by different bodies which are strongly nationalli~ based:â2
- The G3 (the United States, Japan, EU) takes an overall view of the monetary, fiscal and exchange rate relationships between the G3 countries although, in practice, this has been confined primarily to attempts to determine the global money sttpply and to manipulate exchange rates...
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This has not resolved the
basic problem of âan institutional gap between the increasingly international
nature of the financial system and the still predominantly ânationalâ remits of the major central banks and the wider nationally located regulatory
mechanisms for financial markets and institutionsâ...
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