again with the central bank thing

London Banker:

Because they now have the role of market maker of last resort, central banks should become much more active in ensuring that any asset permitted to be classed as capital by a bank can be liquidated on demand in a public market.

If this is so, then they must needs take a view on the value of all sorts of assets and therefore of all sorts of capital investment. This brings us back to a point I was making earlier on – whether the independent central bank is a valid institutional model any more.

(Also, when did I start taking views on things? The phrase seems to be getting all over the place.)


    Leave a Reply

    Fill in your details below or click an icon to log in: Logo

    You are commenting using your account. Log Out /  Change )

    Google+ photo

    You are commenting using your Google+ account. Log Out /  Change )

    Twitter picture

    You are commenting using your Twitter account. Log Out /  Change )

    Facebook photo

    You are commenting using your Facebook account. Log Out /  Change )


    Connecting to %s

%d bloggers like this: