Economics & Finance
Paul Volcker served as Chairman of the U.S. Federal Reserve during a period of economic turbulence when his prescribed monetary policies helped tame double-digit inflation rates in the early 1980s. More recently, he served as chairman of President Barack Obama’s Economic Advisory Board from February 2009 until January 2011. A vocal advocate for banking reform, his eponymous Volcker Rule, due to come into force next year, is meant to prevent American banks from making big bets on markets with their own money or from backing private equity and hedge funds. In an interview with INSEAD Knowledge at the Lee Kuan Yew (LKY) School of Public Policy in Singapore recently, he discusses Europe’s response to the sovereign debt crisis, stagnant U.S. unemployment and shortfalls in banking legislation in the aftermath of the credit crisis.