Wow The Federal Reserve Smacks Downward Paul Krugman

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Wow The Federal Reserve Smacks Downward Paul Krugman



In a recent column, The New York Times economist Paul Krugman attacked the deregulation of banking together with called banking earlier deregulation "boring banking."

He blamed the crises since the deregulation equally beingness caused yesteryear the deregulation.

But none other than the Federal Reserve has come upwardly out to refute Krugman's claim. In an essay, Were Banks ‘Boring’ earlier the Repeal of Glass-Steagall?, Nicola Cetorelli, an assistant vice president inwards the Federal Reserve Bank of New York’s Research together with Statistics Group, concludes:
In sum, the repeal of Glass-Steagall inwards 1999 does non look to bring ignited a flurry of novel activities. As I greenback inwards a recent New York Fed Staff Report(see page five), banking firms had already been widening their trouble organisation reach for a long time, together with hence it is non clear that that detail regulatory reform tin last considered the catalyst of the Great Recession merely about 10 years later, nor is it straightaway obvious how reinstating restrictions per se would trim the likelihood of a time to come crisis.
 -RW



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