Is there a way out of this predicament? If the objective of global governance is to secure global financial stability, and if global financial stability is a public good, global governance can be analyzed as a microeconomic problem regarding public goods. There are well-known options to solving the problems posed by public goods.
In Europe, we have gone one step further in ensuring that banks in the euro area are supervised according to one approach – an essential part of the response to the crisis was to create a single supervisor for the euro area. The single rulebook forms the basis for this supervision. But this rulebook is not as single as supervisors would like.