Kansas City Fed’s George discusses the mis-pricing of risk

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Esther George, president of the Kansas City Federal Reserve, on January 10 said the conduct of monetary policy should encourage the financial system to undertake prudent risk-taking but also prevent the mis-pricing of risk.

At the Central Exchange Economic Outlook 2012 in Kansas City, Missouri, George said: "On the one hand, today's policy settings are designed to encourage risk-taking and to stimulate much-needed growth across our economy. But on the other hand, experience has shown that

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