Infometrics • Apr 10, 2014 •
David Grimmond writes about the old Chicago Plan, written up following the Great Depression (Infometrics link). Given the way it is described by the IMF he believe it: There are many other examples of low lying fruit in the policy domain where a combination of entrenched interests and innate conservatism inhibits movements to welfare enhancing […] … Read More
Matt Nolan • Mar 14, 2014 •
I had to do a brief chat about the Global Financial Crisis, “mistakes” that were made, and the role of the international financial architecture, for a organisation I’m not naming with people I’m not naming. It was Chatham House rules, but nothing particularly rough was said – so I’m more not naming anything as I […] … Read More
Shamubeel Eaqub • Oct 08, 2013 •
RBNZ restrictions on high loan to value ratio (LVR) mortgages came into effect on 1 October 2013. They are already biting – with ASB pulling its high LVR approvals. By definition, the new rules will reduce high LVR borrowing growth, but not necessarily total borrowing (because banks are now incentivised to lend ‘traditional’ mortgages). The […] … Read More
Matt Nolan • Aug 13, 2013 •
I see the RBNZ has come out with the details of the LVR restrictions (loan-to-value limits on mortgages) they may well put in place soon. That is cool. I’m also Continue Reading → … Read More
Matt Nolan • Aug 13, 2013 •
Sounds like the Massey University panel on banking regulation was good times – with Don Brash, David Tripe, and Bevan Graham all largely in agreement. For what it matters I Continue Reading → … Read More
Shamubeel Eaqub • Aug 11, 2013 •
National has announced policy to support first home buyers to take on more debt. It will have an entirely predictable outcome: higher house prices and higher debt. The only good Continue Reading → … Read More
Matt Nolan • Jul 25, 2013 •
Robert Shiller has writtem extensively about bubbles. Via Stephen Kirchner I saw the following: Because bubbles are essentially social-psychological phenomena, they are, by their very nature, difficult to control. Regulatory Continue Reading → … Read More
Matt Nolan • Jul 01, 2013 •
In an otherwise clear, insightful, and useful speech regarding the use of macroprudential tools – and why – the Reserve Bank states the following While the Reserve Bank’s mandate is Continue Reading → … Read More
Matt Nolan • May 16, 2013 •
Hmmm, it looks like no-one wants to dissuade people from viewing the new RBNZ tools as ways to “stop bubbles”. I think this is a dangerous mistake. The focus on financial Continue Reading → … Read More
Matt Nolan • May 08, 2013 •
I see that, due to concerns about systemic risk for the financial stemming from the housing market, the Reserve Bank of New Zealand has decided to increase capital requirements for Continue Reading → … Read More