Marc, thanks as always for the history and insights. On Libor, missed in it problems and warts is the effect of Goodhart’s law, which Marilyn Strathern summarizes as “When a measure becomes a target, it ceases to be a good measure.” Having worked in rates’ market through Libor’s twilight years, I can say it definitely had it problems but also the replacements our all-knowing monetary overlords are promoting do not fully replace the risk that Libor captured.
Nice summary of each of these, a good read
Marc, thanks as always for the history and insights. On Libor, missed in it problems and warts is the effect of Goodhart’s law, which Marilyn Strathern summarizes as “When a measure becomes a target, it ceases to be a good measure.” Having worked in rates’ market through Libor’s twilight years, I can say it definitely had it problems but also the replacements our all-knowing monetary overlords are promoting do not fully replace the risk that Libor captured.
Thanks for the "Rigged" reference! It goes directly to my to-do list.