Financial market fragility might be down to 'poor policies', says Lacker


Jeffery Lacker, the president of the Federal Reserve Bank of Richmond, raised the possibility that financial system fragility is induced by "poor policy", rather than being inherent to financial markets, in a speech in Arizona on Friday.

Economic models based on financial frictions were used to justify many of the Fed's interventions during the financial crisis, Lacker said, adding that such models are necessarily abstract and stylised, and their applicability to the actual situation at hand

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account