Blog

Sir Paul Tucker on Floors and Corridors

In weighing the advantages of the Fed’s floor system compared to those of a “corridor system,” Fed officials haven’t just put their thumbs on the floor‐​system scale by exaggerating its merits. They’ve also exaggerated the drawbacks of a corridor system.

Blog

The Fed’s New Foreign Repo Pool Policy

There isn’t all that much difference between what the Fed has chosen to do and what I had suggested it do, except that by providing for a more certain and stable FRP rate “penalty,” my proposal would have constituted a somewhat more reliable means by which to discourage the pool’s overuse.

Blog

Dudley’s Defense of the Fed’s Floor System, Take 2

Former New York Fed President Bill Dudley once again claims that the post‐​2008 floor system “is much simpler to carry out” than a corridor arrangement. Only he now adds that this is so, “provided there are sufficient reserves in the system.”

January 8, 2020
Commentary

The Wrong Kicks on Route 36

If the MLA has not helped service members, why extend it? The MLA is a cautionary tale — not a model — for consumer credit regulation. It seems ripe for repeal, not ready to extend to all consumers.

Real Clear Policy
Blog

Preventing Financial Bailouts Is Hard

It should have been obvious ex ante that failing institutions and their investors would manipulate the system to avoid the impact of the (well‐​intentioned) regulation that tried to outlaw bailouts.