Positive “Legal Complexity Externalities” and International Financial Centres

The pundits say that legal complexity is bad. It raises transactions costs and confuses everyone. Yet, the data show that businesses choose advisers from jurisdictions with the most complex financial law. Could such complicated law provide “standardised terms” for really, really complex transactions? Could aspiring international financial centres shape their law to accommodate these needs?



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s