News
Bloomberg | Fed’s Fisher Sees ‘High Bar’ for Supporting Additional Monetary Stimulus
Federal Reserve Bank of Dallas President Richard Fisher said he probably won’t support further monetary easing by the Fed, arguing that steps that would boost the recovery are the responsibility of fiscal authorities.
Bloomberg | U.K. Inflation Accelerates to 4.5%, Meets Estimates as Clothes Prices Jump
U.K. inflation accelerated in August as the end of seasonal discounts boosted prices for items such as clothes and furniture.
Bloomberg | French Inflation Climbs to Highest Level in Almost Three Years on Energy
French inflation accelerated to the highest in almost three years in August as the end of summer sales boosted prices of manufactured goods and the cost of energy jumped.
Econ Comments
Financial Post | The deadly cocktail of Basel III
In commentaries on this page on bank capital requirements, I have repeatedly warned that the international push to implement Basel III, which mandates increases in bank capital-asset ratios, is a deadly cocktail to ingest in the middle of an economic slump.
Reports
AEI | The Basel Proposed Rule on Liquidity Regulation and a Suggestion for a Better Approach
The Basel proposal envisions two sets of liquidity requirements: a short-term liquidity funding ratio and a long-term net stable funding ratio. Both are quite complex and may become still more complicated once the process of consultation is concluded. We believe both ratios, as currently conceived, are too complex and would result in an opaque application of the standard that would be subject to excessive supervisory discretion.
