Here is the dilemma we cannot evade. If we want a truly global
financial system, we need to acquiesce in a global regulator and a
global lender of last resort. If we do not want the latter, we cannot
have an integrated global financial system, so we must acquiesce
Where do you stand?
Here is the link. We already have a global lender of last resort and it is called the Federal Reserve System, plus the IMF plays a role as well. The global regulator is Basel II and the sequels to come. The global regulator needs to be improved and in fact we probably need to rely more on national regulators and less on "one size fits all" standards. That is where I stand and I wonder where Rodrik stands. Note also that capital controls do not in general eliminate financial crises. The United States for instance has hardly been suffering from capital flight and most plausible forms of capital controls would not have saved Iceland from financial ruin.