CSPAN Key Capitol Hill Hearings July 16, 2014
Lending such as debt to income and loan to value ratios. As a macro prudential tool that could slow mortgage lending. Im very skeptical that during a housing boom, regulators would ever act aggressively to restrict lending to individuals with high levels of debt or low incomes. In fact, recent experience suggests all the political pressures run counter to that happening. Its also highly questionable to think that forecasters will identify beforehand when these tools should be adjusted during the credit cycle. While Financial Stability can complement the goals of Monetary Policy, its paramount ...