Like the first, it acknowledges that there are a variety of practical limitations associated with discretionary time-varying regulation, though the severity of these limitations may vary considerably across different countries, markets, and  1  For a forceful exposition of this view, see John Cochrane (2013), “The Danger of an AllPowerful Federal Reserve,” Wall Street Journal, August 26, http://online.wsj.com/article/ SB10001424127887323906804579036571835323800.html.
BIS central bankers’ speeches  1  institutional arrangements.2 In cases where regulation can be effectively adjusted over time, doing so remains the preferred approach.