Intensive Margin of the Volcker Rule: Price Quality and Welfare

Courtesy of Sakai Ando & Misaki Matsumura The Volcker rule was included in the 2010 Dodd-Frank Act at the behest of former Federal Reserve Chairman Paul Volcker, who argued that banks should not be allowed to speculate with government insured deposits.1 The rule limits the ability of banking entities, acting as dealers, to take risks […]