FT, more bank credit to “safer” grown-up trees, and less to “riskier” green-shoots, must result in lower productivity

Sir, you write “There can be few problems that are so important and yet command so little consensus about their source and solution as the general slide in productivity growth across the world’s economies”, “The puzzle that baffles the world’s economies”, May 30.

And yet you refuse to echo my concerns that the risk-weighted capital requirements for banks, which allow banks to earn higher risk adjusted returns on equity on what is ex ante perceived, decreed or concocted as safe, than on what is perceived risky, creates serious distortions in the allocation of bank credit.

I have I written at least on 100 letters to you on that issue? How many have you ignored? All!

@PerKurowski ©