IMF to review central bank response to turmoil

The International Monetary Fund (IMF) is set to investigate the reaction of leading central banks to the interbank turmoil that hit markets in the wake of the subprime crisis.

The Fund said investigating the different approaches followed by the European Central Bank (ECB), the Federal Reserve and the Bank of England "holds lessons that could be useful to all central bankers."

The research will look at:

· whether the ability to operate directly with a wide range of counterparties is helpful in

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