September 12, 2016
Sir, I refer to Lucy Kellaway’s “The plague of compulsory creativity may be dying out” September 12.
She is absolutely right in what she there argues, but she could have added power to her arguments by identifying when empowering creativity, can lead to some truly dangerous creativity, and cause huge disasters.
Think for instance of the bank regulators in the Basel Committee. Based on the very creative theorem that what is ex ante perceived as risky, is riskier for the bank systems than what is perceived as safe, they created the risk weighted capital requirements for banks; and with that they seriously distorted the allocation of credit to the real economy,
And now the safe havens are becoming dangerously overpopulated, while all the risky bays, where SMEs and entrepreneurs reside, are equally dangerous being underexplored.