ABSTRACT
One major problem in global governance is the specification of decision-making rules for international coordination of all the states of the world. This chapter focuses on Wicksell who made contributions to future macroeconomics, formulating a coherent version of the quantity theory of money, as he initiated the conversion of the old quantity theory into a full-blown theory of prices. A key concept in international relations theory is that of interdependency or reciprocity. Since World War II the proliferation of multilateral decision-making mechanisms indicates the profound transaction cost saving reasons for governments to set up and run international and regional organizations. Coordination in a group with several players can take the explicit form of direct voting according to a choice mechanism and an aggregation rule. The International Whaling Commission (IWC) organizes the states, which adheres to the International Convention for the Regulation of Whaling of 1946.
