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As you noted, price fluctuations occur in the European cap-and-trade system because the initial allocation of credits was too generous, rather than any inherent price volatility in carbon markets.
Under rules laid out in 2013 by the Department of Housing and Urban Development, the TDHCA was then given a chance to demonstrate that its allocation of credits served a nondiscriminatory business interest, which it couldn't achieve by less discriminatory means.
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Japan's bureaucratic allocation of credit seldom spurs animal spirits.
The government largely controls the allocation of credit in China.
This allocation of credit is inversely proportional to the risk that white and black anti-slavery activists faced.
The two moves shift China further toward a Western-style financial system in which markets determine the allocation of credit, not government officials.
The biggest political challenge for any system of e-bonds is to agree on who should determine the allocation of credit and set the fiscal conditions.
Supporters believe that dealing in both short-term and long-term securities would distort the interest-rate structure and therefore the allocation of credit.
When politicians and their officials start deciding who should and who should not get loans, the allocation of credit tends to be decided by who lobbies most effectively rather than by where the money should go.
Does this not turn central banking into a dirigiste central allocation of credit?Should you be in the process of establishing a new track record, I wonder which monetary-policy proposal you might float next.
Mr Posen decried the "self-imposed taboos" and "prehistoric thinking" that makes central banks worry that targeted lending will distort the allocation of credit or turn into politically motivated money-printing.
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