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"It's macroeconomic supervision; it's not micro control of individual banks.
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Rajan, who worked from 2003 to 2006 as the chief economist at the International Monetary Fund, has experience with financial blowups in developing countries, where irresponsible macroeconomic policies, poor supervision, and crony capitalism — banks extending reckless loans to influential people — often distort economic behavior.
As I argued in a recent article, "Reviving a Policy Marriage," such a harmonization of financial supervision and macroeconomic management can be the key to happy cyclical endings in the long-term.
Or take macroeconomic policy.
First, macroeconomic policy.
Macroeconomic policies are sound.
Institutional barriers between bank supervision and monetary policy have been removed in the hope that central banks will have a fuller picture of financial and macroeconomic risks.With more jobs, central banks need more tools.
Macroeconomic trends should help.
Plouffe and Daley, macroeconomic theorists!
Macroeconomic Effects of Fiscal Consolidation".
Another could be macroeconomic instability.
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