Stop Raining On Everyone's Parade, Charles Evans

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How's this for a novel approach: Try dealing with the financial crisis at hand, rather than worrying about the next one.
That's the nugget of common sense offered by Charles Evans, president of the Chicago Fed, with the suspiciously socialistic backdrop of the City of Light. Like Blackrock's Larry Fink, he's sick and tired of hearing about the asset bubbles rising to the surface at home and abroad. His radical suggestion is to actually implement some of the mountain of regulatory changes prompted by the credit and financial crises of the last two years instead of going on a wild-goose chase.


"As long as we can't detect bubbles with great confidence, it seems unwise to adopt fighting them as a policy object," Evans said, naively assuming that any regulator anywhere has any wisdom at all. "Instead it seems better to commit to what central banks are already mandated to do: preserve the safety and soundness of the financial system at all times."
Fulfill their mandates? Preserve the soundness of the financial system? How boring, when there are possibly imaginary bubbles over which to wring one's hands.
Evans Says Fed Shouldn't Adopt Policy to Prick Asset 'Bubbles' [Bloomberg]

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