NY Fed's Geithner on liquidity & financial markets

In the speech 'Liquidity and financial markets' given on 28 February Timothy Geithner of the Federal Reserve Bank of New York said central banks should not focus on using policy to prevent asset bubbles, especially because liquidity is so difficult to measure.

Large hedge funds, in particular, pose a unique challenge to policy-makers because of their secretive nature and use of multiple counterparties, Geithner said.

"Central banks cannot realistically hold out the prospect of using monetary

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