Mervyn King Archives - Emile Woolf writes

THE RISK FACTOR: TIME FOR AN HONEST ASSESSMENT

  [JUNE 2020 – ECONOMIC PERSPECTIVES – 83] As the spread of Covid begins to wane we should consider afresh whether, for example, a shopkeeper who travels to work to open his business is in fact acting irresponsibly. This comes, as ever, down to the question of risk. Since some people are more risk averse […]

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Justice in action: condoning default has a price

In the 6th Century AD, Emperor Justinian undertook the noble enterprise of saving, in writing, all the laws of ancient Rome. His famous “Code” includes the Roman definition of justice: ”the constant and perpetual will to render every man his due”. Since it is rare for any earthly “will” to be constant, let alone perpetual, […]

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Sovereign bailouts versus economic law: who will win?

The Queen’s question about the credit crisis was wonderfully simple: “If these things were so big, why did no one see them coming?” The answer given by Mervyn King, governor of the Bank of England, in his recent interview is that many people did see the crisis coming, but no one knew when. The same […]

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Bank lending scandal: sorting fact from fiction

The lending spree is over.  It will be a while before credit and risk are re-acquainted.  It is symptomatic of the latest squeeze that virtually every rule of sound banking was ignored. If, in the 1990s, conventional risk assessment dictated that mortgages should not exceed either 90 per cent of the property’s value or a […]

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