A systemic crisis might even provoke a rat race among national governments for the fund’s limited resources. While the Basel II framework puts a shadow price on risk, and the Stabilisation Fund puts a tax on risk, a third proposal goes one step further.
In fact, the barriers to cross-border capital movements have increasingly been lifted as a result of political measures and technological advances. 1  BIS Review 80/2000  The global integration of the financial markets is anything but an end in itself. Not only does it open up to investors a broad new range of investment opportunities for diversifying portfolio risks.