Posts tagged ‘Economic crisis’
In a speech at the Buttonwood Gathering in New York City Mervin King made the following remark :
Another avenue of reform is some form of functional separation. The Volcker Rule is one example.
Another, more fundamental, example would be to divorce the payment system from risky lending activity –that is to prevent fractional reserve banking (for example, as proposed by Fisher, 1936,
Friedman, 1960, Tobin, 1987 and more recently by Kay, 2009). (more…)