One thought on “Governing finance under conditions of incomplete law, Katharina Pistor

  1. The differentiation of private law and public law is brilliant (even though this is a trivial differentiation out of roman law – it is not very commonly understood, specifically not by economists…)

    But there is another key distinction that I am missing to be mentioned explicitly here: Law vs. Non-Law (Custom).

    Concering the "Tequila" and Russian financial crises:
    is it enough to argue on "incompleteness" of law here?
    Do these countries not also have issues with legal institutions to begin with? E.g. reliability of enforcement (and its expectation of all relevant parties) and the difference between written law (code) and experienced right in everyday life etc.
    The "incompletenes" issue and everything connected with that remains even in more or less reliably working states under the rule of law. But in countries like Greece, Bulgaria, Russia, Mexico,… (actually almost in all states outside of some few countries in the West) there are even deeper issues with legal institutions themselves. Alas the differentiation of law and non-law (custom; relations in stateless communities or communities within weak states).

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