Buffer Madness
In the wake of recent bank failures in the United States and Switzerland, there have been growing calls for banks to strengthen their capital buffers. But it is not at all clear that higher regulatory capital would have any effect on financial stability.
https://prosyn.org/0AoCIXN
EDINBURGH – Speaking at this summer’s European Central Bank Forum in Portugal, Gita Gopinath, the International Monetary Fund’s first Deputy Managing Director, set out what she described as “Three Uncomfortable Truths for Monetary Policy.” But it was the speech itself that often made for awkward listening.