The talents of Paul Volcker have been wasted on the Volcker Rule. There is nothing wrong with the concept of the Volcker Rule and in fact, it is useful to have especially if the government is providing a deposit guarantee to banks. Yes, it would be hard to determine prop trading, but policy should not let banks take excessive risks with taxpayer guarantees.
Paul Volcker could do more to help with the current crisis and has done more to solve some of the biggest financial problems facing the US over the last 50 years. Bill Silber has provided a very good biography of a great public servant. At times Silber may be excessive in his praise, but Paul Volcker has provided invaluable service to the US through working through some of the most difficult financial and monetary problems of the last 50 years. The two key battles he fought was the US's movement away from the Bretton Woods fixed exchange rate gold standard system and breaking the back of inflation during his time as the Chairman of the Fed.The Fed period is the most controversial. He was a pragmatist who used a smokescreen of monetarism to raise rates and break inflation even in the face of intense pressure form the Reagan administration. He could have folded under this pressure but he kept rates high even with significant budget deficits.
Most important, Volcker stuck to principles on what is good policy even in the face of strong political pressure. He understood the politics and could be loyal at implementing the policies of the administration he worked for, but he always tried to move policy in the right direction.
Paul Volcker could do more to help with the current crisis and has done more to solve some of the biggest financial problems facing the US over the last 50 years. Bill Silber has provided a very good biography of a great public servant. At times Silber may be excessive in his praise, but Paul Volcker has provided invaluable service to the US through working through some of the most difficult financial and monetary problems of the last 50 years. The two key battles he fought was the US's movement away from the Bretton Woods fixed exchange rate gold standard system and breaking the back of inflation during his time as the Chairman of the Fed.The Fed period is the most controversial. He was a pragmatist who used a smokescreen of monetarism to raise rates and break inflation even in the face of intense pressure form the Reagan administration. He could have folded under this pressure but he kept rates high even with significant budget deficits.
Most important, Volcker stuck to principles on what is good policy even in the face of strong political pressure. He understood the politics and could be loyal at implementing the policies of the administration he worked for, but he always tried to move policy in the right direction.
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