Author Archives: Ole Rummel

Four Praises and a Funeral: In Defence of Short Selling

Everyone loves a good underdog story in which an unlikely hero takes on a mighty foe in the face of overwhelming odds. The recent US stock market uprising involving the mobilisation of retail investors to collectively drive up the share price of GameStop, a video-game retailer best known for its bricks and mortar stores, can […]

Credit where credit is due: calculating credit-to-GDP gaps

In the wake of the Great Financial Crisis, the Basel Committee on Banking Supervision (BCBS) argued for counter-cyclical capital buffers and published operational guidelines (BCBS 2010) for regulators.  The cornerstone of the BCBS proposal was the use of cyclical movements in the credit-to-GDP ratio gap to trigger increases in the capital required to be held […]