Hedge funds pose financial stability risks - Noyer

Bank of France governor Christian Noyer said in a speech at a Bundesbank conference Friday 27 April financial innovation is partly to blame for the unstable growth in eurozone M3 money supply.

Noyer said the European Central Bank needs to constantly adapt to changing circumstances in its analysis of money and credit growth, and its implications for inflation.

'It is clearly not a surprise, at a time of burgeoning financial innovation to observe signs of instability in money demand,' Noyer told