Read the Charles Goodhart Interview.
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“there is always a trade-off between the short run effects, as tighter regulation will slow down lending and growth, and the long term benefits of greater resilience and a lower likelihood of crises”… Charles Goodhart’s words are so wise that they also apply to areas that were not touch upon during this long and rich interview: they reminded me of the unwise choice, by the second von der Leyen Commission, but also the EU Council and Parliament, to unwind most compulsory reporting requirements for non-financial companies regarding climate risk and human rights. Maybe in the short run this will somehow support the EU’s competitiveness vis à vis the US, but soon we will see the effects of turning off the radar that should guide the banking system’s shift from vulnerable sectors to a sustainable economy.