Macroprudential policies were loosened in a counter-cyclical fashion during the 2008–09 global financial crisis. But more experience needs to be gained on whether and how these instruments should be recalibrated as the financial cycle turns.
"Our findings emphasize that the failure to consider official flows as the main driver of uphill flows and global imbalances is an important shortcoming of the recent literature. Sovereigns and official donors invest in low return countries for other considerations. Not taking this behavior into account can easily lead to misleading conclusions about the general facts regarding capital flows and misguide policy implications. "
If the new graduate in your life has the connections to join a very large brand-name private-equity fund, the path to immense wealth, political influence, or even power becomes much clearer. Without such initial connections, however, it is very unlikely that he or she will become an oligarch.
Total consumer debt continued to increase in the first quarter of this year, marking the first time since the recession that aggregate debt had grown for three consecutive quarters, according to the May 2014 Quarterly Report on Household Debt and Credit. Is this increase in household debt driven by changes in supply or demand?