Fiscal Policy and Fickle Fortunes: What’s Luck Got to Do With It?
If you buy a lottery ticket, you usually wait to see if you’ve won before going on a spending spree. This Economic Commentary explains why we ought to be just as careful about spending projected federal budget surpluses.
Banking supervision must keep pace with technical innovations in the banking industry. The international Basel Committee on Banking Supervision currently is reviewing public comments on its proposed new method for judging whether a bank maintains enough capital to absorb unexpected losses. This Economic Commentary explains how existing standards became obsolete and describes the new plan.
Suggested citation: Altig, David, 2000. "Fiscal Policy and Fickle Fortunes: What’s Luck Got to Do With It?" Federal Reserve Bank of Cleveland, Economic Commentary, 04.01.2000.