Deciding on the topic of my Master-Thesis
I have to come up with a decision about my Master-Thesis. I want to write about Global Governance in the financial markets, but I have to be more specific. Financial markets are very interesting. It takes some time to understand the basic mechanisms, but analysing financial markets can be fun. It’s a weird combination of economics, math, psychology, gambling, political science and business studies.
When I started my MPhil in Cambridge, I thought that the financial markets were mainly regulated through the bodies created by the G7/G8 throughout the years.
My supervisor John Forsyth made me aware of the BIS as a main coordinating body of Central Banks. Then I read “Central Bank Coordination at the Bank of International Settlements, 1930-1973” by Prof. Toniolo and Piet Clement from the BIS.
The book is great for understanding economic history. It also shows that there was considerable bargaining to create cooperation of the regulators of Financial Markets. Since the BIS acted as a clearing house and deposit bank for the Central Banks, it created its own income, was fairly independent from the governments and provided technical expertise when creating the Basel System of Banking Supervision.
In the 1970ies a new actor emerged on the field of financial regulation: the Library Group of the Finance Ministers which later became the G7-System. The G7 often created policy responses to financial crises and established several bodies, like the Financial Action Task Force.
There are three main ideas that I have:
- What did the Central Bank governors think about the emergent coordination between finance ministers and later head of governments in the field of finance? Was there general support or skepticism? Recently, the Archives of the BIS opened until 1977 and this might be the opportunity to research on a topic that no one had the chance to explore yet.
- I would suspect that the cooperation between G7/G8 and BIS was quite cooperative in many cases throughout the years and an intricate network of coordinating bodies evolved. Mapping that network would also provide an interesting research project.
- Learning from history, it is likely to expect new regulation in the field of financial markets after this financial crisis. It might be an interesting research to see which regulation is planned and who takes the regulatory initiative – BIS or G8.
I pretty much have to make a decision of going into an historic analysis or trying to research a contempary issue. The first topic is certainly more focused, the second and third topic bring along a high degree of uncertainty. Hmm….
Januar 26th, 2008 at 15:51
[...] One more traditional blogger, with a revolutionary flare. Hope he continues blogging, while writing his Master Thesis. Hang in there Karsten. It’s just a phase, it will [...]
Januar 29th, 2008 at 17:31
Given that the nature of the monetary system and central banking is flawed, I would suggest a thesis disproving John Maynard Keynes theory that “consumption is the key to prosperity.” and should be innovation is the key to prosperity. Egypt – achitecture, Rome – plumbing, Victorian England – plubmbing and railways. Disparities in innovation cause war and conquest. Trust promotes peace and prosperity.
http://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International
http://en.wikipedia.org/wiki/Clearstream
Januar 29th, 2008 at 17:36
Given that the nature of the monetary system and central banking is flawed, I would suggest a thesis disproving John Maynard Keynes theory that “consumption is the key to prosperity.” and should be innovation is the key to prosperity. Egypt – achitecture, Rome – plumbing, Victorian England – plubmbing and railways. Disparities in innovation cause war and conquest. Trust promotes peace and prosperity. Try Braudel.
Otherwise Good luck with the thesis!
http://en.wikipedia.org/wiki/Bank_of_Credit_and_Commerce_International
http://en.wikipedia.org/wiki/Clearstream