Bernanke on regulation and financial innovation

In the speech 'Regulation and financial innovation' given on 15 May Ben Bernanke of the Federal Reserve said gave his view on the hedge fund debate saying central banks and financial regulators should resist the temptation to devise ad hoc rules for each new type of financial instrument or institution.

"Rather, we should strive to develop common, principles-based policy responses that can be applied consistently across the financial sector to meet clearly defined objectives," he said in a speech

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