The Redesign of the Global Financial Architecture, 2nd Edition

6The Financial Stability Board

Its creation, structure, and processes¹

Institutional change only makes sense by reference to the ideas that inform agents’ responses to moments of uncertainty and crisis.

(Blyth, 2002)

Introduction

Crises tend to force actors together and to clarify common goals. When actors collectively face possible disaster, the failures of the past become clear, as does the necessity for change, and the search for solutions must include the broadest actions possible. In this way, financial and economic crises increase possible policy options, and actions thought impossible in normal times become possible in the face of unprecedented shocks.

The global economic and financial crisis of 2007–2008 was such an event. The world’s ...