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Iceland sets up swaps with Nordic CBs

In a move that is expected to do much to support the weak krona, the Central Bank of Iceland on Friday said that it had come to an agreement with Sweden, Norway and Denmark to swap its currency for euros.

Regulation should aim to burst bubbles

Frederic Mishkin, a governor at the Federal Reserve, has acknowledged that the Fed should consider responding to asset price bubbles - a move that would contravene a tenet of the Greenspan-era institution.

Fed should have spoken out on housing bubble

The Federal Reserve should have done more to alert American consumers to the bubble in the real estate market, Robert Shiller, an economics professor at Yale, said in an exclusive interview with Central Banking, published on Thursday.

Extend Fed's regulatory power: Volcker

The Federal Reserve's role as a financial regulator must be expanded given its recent assistance to Bear Stearns and other investment banks, Paul Volcker, a former chairman of the Fed, said.

HKMA's Yue on Islamic finance

Greater efforts must be made to establish a level playing-field between the conduct of Islamic finance business and conventional activities, Eddie Yue, a deputy chief executive at the Hong Kong Monetary Authority, noted.

Tensions could re-emerge: Riksbank deputy

Despite positive signs in recent weeks, it is still too early to assume that financial markets will return to normal without any further disruptions, Barbro Wickman-Parak, a deputy governor at the Riksbank, warned.

Fed's Rosengren on risk management

The recent financial turmoil has highlighted both the benefits and the challenges associated with pursuing risk management, Eric Rosengren, the president of the Boston Federal Reserve, said.

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