BoE's Paul Tucker on global credit crunch

Paul Tucker, executive director for markets at the Bank of England and a member of the monetary policy committee, at a speech on Thursday, analysed the difficulties facing central banks in correctly diagnosing changes in credit conditions and asset prices and acknowledged that central banks did not have a satisfactory answer to the dilemmas posed.

"It is distinctly uncomfortable for the world's central banks to rely entirely on mopping up after a bubble bursts: one imbalance can lead to another

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