Is ethanol a good alternative to petroleum fuels? And is using corn to produce ethanol the right method?
Where do you think we will be in 50 years on this issue?
Find a reference that discusses an alternative fuel. Tell us what the article says about it and include your article as a reference.”
There are actually many dimensions to having a macroprudential approach, varying from better identifying risks, to building more robust institutional infrastructures, to adopting new, system-oriented policies aimed at reducing excessive procyclicality and risks, and designing the institutional framework for operating them. The starting point and most complex issue, is to better understand the dimensions of systemic risks and have associated warning signals. Macroprudential supervision will fill an important gap in the supervisory architecture of the financial system. A regular analysis of the resilience of the financial system as a whole, of interconnectedness and issues of procyclicality is a long overdue and valuable component of financial supervision (Ackermann, 2010). While the institutional framework for the new systemic risk supervisors is now in place due to regulatory reforms, the operational framework is not. The new bodies will quickly need to achieve credibility in the markets by virtue of the quality of their analyses and recommendations. Despite much discussion and some tentative steps forward, as of yet, approaches remain largely microprudential. For the most part, Basel III, developed after the financial crisis, is microprudentially oriented (Basel Committee on Banking Supervision, 2010). It appropriately targets the quantity and quality of bank capital as these institutions’ lack of good capital made them vulnerable during the crisis. However, more capital only helps cushion an individual institution’s losses. This means that the systemic nature of multiple and simultaneous bank distress is only partially addressed. As for liquidity risk, the determinants of the Net Stable Funding Ratio, one of the two liquidity risk components of Basel III are not yet finalized and various parts look watered down. The Liquidity Coverage Ratio and the Net Stable Funding Ratio also do not firmly counter banks’ potential to generate systemic liquidity risk ex ante, although with high enough ratios the chance of a systemic liquidity event is lessened. Even though there have been progress made through the Basel Committee, research has led me to believe that it is too backwards-looking to be fully effective. For example, it assumes that the securities which have been risky in the past are the same as the securities which will be risky in the future and does not account for future advancements and developments in >GET ANSWER