This piece is Professor Emilios Avgouleas’s response to Professor Steven L. Schwarcz’s article, Controlling Financial Chaos: The Power and Limits of Law. Professor Schwarcz’s article is available here.
With the devastating impact of the Global Financial Crisis still reverberating around the globe, the Eurozone sinking ever deeper into a sovereign debt and banking crisis, and the developed countries struggling to climb out of the recession trap they have fallen into since 2008, original thinking, like that offered by Professor Steven Schwarcz in his Wisconsin Law Review article[note]Steven L. Schwarcz, Controlling Financial Chaos: The Power and Limits of Law, 2012 Wis. L. Rev. 815.[/note] is very welcome and timely. The academic and policy-making communities share an unusually widespread consensus regarding the causes of the Global Financial Crisis. However, views on the right policies that will restore stability to the global financial system tend to differ sharply.
Professor Avgouleas holds the chair in international banking law and finance at the University of Edinburgh.