Roach urges new monetary policy approach

In comments published on Monday 22 May, Stephen Roach of Morgan Stanley said he is worried that central banking's recent record will not be judged kindly by history.

According to Roach, central banks have "ducked responsibility" for asset price bubbles which could end up being a massive policy blunder.

"By consciously ignoring the perils of a mounting asset bubble ... the Fed became entrapped in the dreaded multi-bubble syndrome," he says.

"Central banks that let economies 'rip' because inflatio