But even granting human imperfections, flexible economic institutions appear to significantly ameliorate the amplitude and duration of the business cycle. The benefits seem sufficiently large that special emphasis should be placed on searching for policies that will foster still greater economic flexibility while seeking opportunities to dismantle policies that contribute to unnecessary rigidity.
The FIST law can possibly free up 1.9 trillion worth of loans from the sale by banks of their non-performing assets. The FIST law is expected to improve the banking systems’ NPL ratio by 0.63 to 0.71 percentage points. Pending in Congress is House Bill NO. 7749 or the Government Financial Institutions Unified Initiative to Distressed Enterprises for Economic Recovery or GUIDE Bill.