John Walter provides an overview of the challenges facing banking regulators.
John Walter grew up in Northern Virginia and earned his bachelor's degree in economics at Virginia Tech and his master's degree at Ohio State University. Walter joined the Richmond Fed in 1981 and currently serves as a senior economist and research adviser.
Walter describes the changes he has seen in his "Meet an Economist" video:
"I've had a front row seat to watch the Fed learn a lot of lessons," Walter says. One of those lessons "was about monetary policy: the way to control inflation is to control money growth. Now we're trying to learn more about what causes problems in the banking sector."
Walter, who describes himself as a banking economist, says the economics profession doesn't understand these problems as well as it understands monetary policy. While banks have to be prevented from taking on excessive amounts of risk, "the danger with going too far with that is you squelch innovation, and innovation is what causes our children to be better off than we are."
John R. Walter