Sir, until about two years ago I had written way over a hundred letters to Martin Wolf where I explained the profound mistakes of the risk-weighted capital requirements for banks present in Basel II. At that point he told me, in no uncertain terms, not to explain it to him anymore since he already understood it. And since that time, as you know, I have not copied Wolf with the letters I have been sending to you commenting on his articles.
But still, week after week, like in his “Bad advice from Basel’s Jeremiah” July 2, Wolf steadfastly refuses to discuss the possibility, I would say the certainty, that these capital requirements seriously distorts all monetary and fiscal policies enacted to ease the consequences of the financial crisis, rendering these useless.
And so Sir, I have to either conclude that Martin Wolf has not understood one iota of what I explained to him, something which might be entirely my fault, or he has some other reasons for keeping mum about it.
PS. Again I will not copy Martin Wolf with this letter. You decide Sir what to do.