23 February 2013

Volcker by William L. Silber

  • This should be required reading for interest rate traders, about the best central banker ever.
  • Volcker : " It is a sheer fact of human nature that if you went along for ten or twenty years without problems, that is going to create an atmosphere in which people will go to the edge. And the regulator will not be as strict and sooner or later you will have a crisis." = Greenspan, Summers + Rubin
  • Volcker : "The danger is that if, in desperation, we turn to deliberately seeking inflation to solve real problems - our economic imbalances, sluggish productivity, and excessive leverage - we would soon find that a little inflation doesn't work ... What we know, or should know, from the past is that once inflation becomes anticipated and ingrained - as it eventually would - then the stimulating effects are lost. Once an independent central bank .. invokes inflation as a policy, it becomes very difficult to eliminate." = Bernanke, Abe.
  • My book rating : 5/5

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