Really interesting piece by @izakaminska on a prudential authority for the real economy. I& #39;d also been thinking a lot about the similarities between post financial crisis debate & emerging debate on resilience vs. efficiency in global supply chains. https://ftalphaville.ft.com/2020/04/01/1585730516000/Why-the-real-economy-needs-a-prudential-authority-too/">https://ftalphaville.ft.com/2020/04/0... 1/

@MESandbu makes a similar point in his piece today on why this shouldn& #39;t be the end for globalisation but a different approach to it https://www.ft.com/content/49a7c20a-72a2-11ea-95fe-fcd274e920ca?emailId=5e85bdb0b045d7000495c3ae&segmentId=2785c52b-1c00-edaa-29be-7452cf90b5a2">https://www.ft.com/content/4... 2/

There are a lot of parallels between the reasons behind regulating for banks to hold sizeable liquidity buffers (interconnectedness & importance to economy) which apply equally to some vital national industries with complex global supply chains 3/

While the debate is already beginning around whether firms should themselves build in greater supply chain resilience, it is hard to imagine this happening evenly & on a large scale without some kind of direction. 4/

Of course we should not rush into this type of approach, there will be costs involved & it is easy to get it wrong, but it is worth considering as part of the long term response to this crisis & as a middle way in the resilience vs. efficiency debate to come. 5/ ENDS