Here, for The New York Times:
If
you are worried about wealth inequality in the United States, then the
solution is not to tighten monetary policy but to make structural
changes to the country’s financial system, starting with the undergrowth
of shadow banking. Serious taxation of wealth and capital gains would
also push in the right direction.
It
would no doubt help if onetime central bankers, rather than cycling in
and out of private finance, spoke out seriously in favor of reform. They
would be doing the public a service if they spelled out the way that
their hands were forced by the current incestuous intertwining of public
debt markets with hedge funds and the like. Ultimately, however, it is
politics that must grasp the nettle of change.
In
the current dispensation, it may be flattering for central bankers to
be cast as maestros, but in practice they are less the lords of easy
money than its functionaries.
Central bankers cycle in and out of private finance raking in millions, Adam.
If anyone were serious about restructuring the country's financial system, the place to start would be by restoring the key missing feature of capitalism without which it doesn't really exist. It's called bankruptcy.
