Archive for February 15th, 2012

Farewell to Free markets?

February 15, 2012

Nicole Gelinas, Fellow at the Manhattan Institute writes a nice article on the topic..

This issue of state vs markets has been the hottest econ topic and there are huge difference of opinions. After every crisis, there is even more of such stuff.

Gelinas says what many others have been saying.



Understanding French attitude towards Americans..

February 15, 2012

It is amazing to note what different things people specialise in. Richard F Kuisel specialises in Franco-American  relations and gives a nice interview here.


Do macroprudential policies leak?

February 15, 2012

Blogging was absent as I was away on a mini-break. To resume now…

Shekhar Aiyar, Charles W Calomiris and Tomasz Wieladek write this interesting paper on the topic.

Say a central bank/prudential regulator imposes some macroprudential policies like raising capital ratios. leverage ratios etc. Do these measures help? As these measures are basically imposed on the regulated banking system one should expect lending to decline. What if the other non-regulated entities (shadow banking system) undo the measures by increasing lending…

In UK, fin reg applies to domestic banks and subsidiaries of foreign banks. However, finreg does not apply to branches of foreign banks.  So the authors study a capital rule imposed on domestic banks and assess the impact of the new capital rule:


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