Archive for September 5th, 2012

UEFA’s new Financial Fair Play initiative…similar to financial regulation?

September 5, 2012

Rob Simmons says UEFA’s new rules to bring financial discipline in Football clubs is likely to backfire. It will only worsen the problems:

Just pointing to the conclusion:

In conclusion, it is sensible for UEFA to agree rules on solvency for European football clubs. But UEFA needs to tread carefully. In particular, it is important to distinguish between balance sheet and cash-flow solvency. The exclusion of non-football income may be unsustainable and subject to legal challenge. Overzealous application of the Fair Play rules generates a significant risk that the dominance of the strong clubs will be enhanced, while the financial instability of lower-division teams in national associations is not addressed. Finally, UEFA may face a challenge under EU competition law if competition in player markets is reduced.

Looks much like finance??

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Time for New Thinking on Economics and Security..

September 5, 2012

A superb lecture by Robert Zolellick, ex chief of World Bank.

He connects economics with security and super titbits from history:

Tonight, I will seek to connect economics and security. In doing so, I will draw on an earlier American foreign policy tradition to offer a revision to the standard post-World War II history.

The connection between economics and security is usually assumed, not analyzed. After examining the origins of America’s foreign economic and security policy, I will describe three phases of the post-World War II international economy and a new, fourth phase, which is just taking shape. I will suggest that the earlier experience—rather than being retired as antiquated—points toward economic fundamentals that are essential to future security in this new era. We need to look “Back to the Future.”

No time to discuss. But is a good read..

Keeping financial regulation simple.. Lessons from how a dog catches a frisby..

September 5, 2012

Andy Haldane again. He continues with his amazing papers/speeches. The recent one was  at Jackson Hole symposium (papers have been put up).

In this paper he talks about how financial regulation is becoming increasingly complex. He nicely links it to a dog catching a frisby:

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