BoE's Kohn stresses predictable nature of FPC ‘knockout'
Donald Kohn, member of the Bank of England's Financial Policy Committee (FPC) and a former vice-chairman of the Federal Reserve, said in a speech yesterday that the FPC does not aim to micro-manage asset or credit cycles – but rather to stop such cycles "from being amplified by financial markets and generating costly fallout for the wider economy".
"Financial cycles, imbalances and asset bubbles," said Kohn, "will persist. It is human nature to become overly optimistic and pessimistic, to go
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