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Full-Text Articles in Rule of Law
From Territorial To Monetary Sovereignty, Katharina Pistor
From Territorial To Monetary Sovereignty, Katharina Pistor
Faculty Scholarship
State sovereignty is closely intertwined with, but not limited to, control over territory and people. It has long been recognized that control over monetary affairs is a critical part of genuine sovereignty. In this Article, I go a step further and argue that the relevance and importance of territorial versus monetary sovereignty has shifted in favor of the latter. This shift goes hand in hand with the rise of credit-based financial systems. Such systems depend, in the last instance, on backstopping by an entity with control over its own money supply and no binding survival constraints. Only states with monetary …
Trade, Law And Product Complexity, Katharina Pistor, Daniel Berkowitz, Johannes Moenius
Trade, Law And Product Complexity, Katharina Pistor, Daniel Berkowitz, Johannes Moenius
Faculty Scholarship
How does the quality of national institutions that enforce the rule of law influence international trade? Anderson and Marcouiller argue that bad institutions located in the importer’s country deter international trade because they enable economic predators to steal and extort rents at the importer’s border. We complement this research and show how good institutions located in the exporter’s country enhance international trade, in particular, trade in complex products whose characteristics are difficult to fully specify in a contract. We argue that both exporter and importer institutions affect international as well as domestic transaction costs in complex and simple product markets. …