The interview with Sir Andrew Likierman raised relevant points. The juxtaposition with the Goodhart interview is particularly interesting, and I was wondering if Goodhart’s notion of the conflicted central banker would equally apply to the conflicted supervisor.
Likierman’s concept of judgment is interesting, but I was left wondering how that differed from discretion. After all, discretion in supervision requires judgment, at the very least, if it is to be effective.