Monetary Policy Won’t Prick Bubbles: Evans
Central banks need supervisory role: Fed chief.
BY Caroline Cakebread | March 30, 2010
Chicago Federal Reserve President, Charles Evans has said that monetary policy is not an effective tool for pricking asset bubbles according Reuters. However, says Evans, central banks with no authority to supervise banks don’t appear to have much choice. As such, regulatory reforms should give them a supervisory role to prevent future financial crises. He made the comments during a speech given in Hong Kong.