Friday, October 31, 2014

Ann Pettifor — Central Banking, State Capitalism, and the Future of the Monetary System


Weekend reading

PRIME
Central Banking, State Capitalism, and the Future of the Monetary System
Ann Pettifor, First published on the CFA Institute website

2 comments:

Ralph Musgrave said...

Ann Pettifor says “I do not really understand what the Basel Committee is attempting to do . . .I do not understand why banks would need capital to lend.” Bit of a gap in her knowledge there.

But apart from that, here article is OK.

circuit said...

Ralph, based on her answer, I actually think she knows what the Basel committee is proposing; she simply does not understand the logic that underlies its proposals.

I agree completely with her view that sound risk management practices on the part of banks is what is needed. Gimmicks like procyclical capital requirements don't do anything to address the root causes of financial crises: bad bank loans.