Divert/distract

An (ex)central banker's guide to ill-conceived remedies for policy errors

A bad thing happens in financial system; the policymaker/regulator responds with ‘remedies’. Those remedies create other ‘bad things’, to which policymakers respond with further, possibly confusing ‘remedies’. A recent example and a suggestion.

In an interview with the Financial Times yesterday, Paul Tucker, deputy governor of the Bank of England until …