Following completion of the LCR earlier this year, the Basel Committee is turning its attention back to the Net Stable Funding Ratio (NSFR), a proposal that was intended to complement the LCR by regulating liquidity levels beyond the 30-day LCR horizon.
This year’s winner of the Nobel Memorial Prize in Economic Sciences, Richard Thaler, has also remarked that the branch of behavioural economics he has played a large part in bringing to the mainstream makes no claim to absolute validity, saying: “All economics will be as behavioural as the topic requires.”7 As far as school education is concerned, this means that on no account should economic ignorance be replaced by an unthinking one-dimensional perspective.