News and Commentary
A column from VoxEU examines the role of liquidity, as opposed to capital, requirements in macroprudential policy. While liquidity requirements are traditionally viewed in the context of microprudential regulation (what’s necessary for an individual bank), focusing liquidity on systemically important banks can improve financial stability in the context of a “contagion.”
While free trade has undoubtedly been a boon to humanity across the globe, the increase in global financialization has had relatively little benefit to the incomes of those in the developing world, and instead has increased inequality.
This New York Times article describes the meetings and relationships Randal Quarles, the Fed’s vice chairmen for supervision and regulation, has had and maintained during his tenure. While he has met with many officials, both from the private and public sector, his relationship with the financial sector is most troubling. While those on the left object to his cozy relationship with the financial sector and his pushes for deregulation and those in financed have expressed some frustration with a perceived slow-walk, his relationship to players in the financial sector is common to many financial regulations.