BoE's Sharp: new shocks around the corner 'perfectly conceivable'
Sharp says macro-prudential regulation is 'particularly challenging'
The inherent uncertainty about how the financial system operates makes trying to predict financial shocks extremely difficult, Richard Sharp, an external member of the Bank of England's Financial Policy Committee (FPC), said yesterday at the London School of Economics.
Thus the most important task of macro-prudential regulators is ensuring that "the system has built up sufficient strength and resilience so that such events can be effectively managed", he argued.
The conduct of macro-prudential
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