Is the Superfund idea going to die a premature death?
In her FT column, Gillian Tett writes that the superfund may soon die a premature death. One reason is that it takes too long. “We are told, for example, that the fund will start in a couple of months. But troubled SIVs need to sort out their problems right now…Given all this, it is no surprise that some policy makers and senior investment bankers have quietly confessed to me in recent days that they suspect the superfund idea will soon die a quiet death.” Stefan Collignon on policy lessons from the crisis In a comment in Financial Times Deutschland, Stefan Collignon writes that the main policy lesson of the credit crisis in Europe is to improve fiscal monetary co-operation. At present, that mix is wrong. Monetary policy is too tight, fiscal policy is too loose. The euro area’s joint fiscal policy stance is not subject to any political process, but outcome of a collection of random national processes. Proposals, such as those by Charles Wyplosz to nationalise the fiscal policy regime