Economic Transition and International Business

3 A Sustainable Review of Conventions between Economic Actors

Pierre-Charles Pupion

The economic convention theory approach gives insight into the genesis and the deepening of the financial crisis. This crisis is coming from mature countries such as the United States; it has impacted countries such as Russia on the way to their growth. This chapter highlights the failure of these coordination mechanisms, so-called conventions necessary for the functioning of the now globalized banking sector. The international rating convention allows the various players to assess the risks of issuers of securities through ratings issued by rating agencies. The collapse of this international rating convention in mature countries was accompanied in the main ...