Fed vice-chair outlines views on financial stability and policy

- John Rumsey
- 17 May 2007

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In a speech in Atlanta at the Federal Reserve Bank of Atlanta's 2007 Financial Markets Conference on Sea Island, Georgia, vice-chairman Donald Kohn said there are good reasons to think financial innovation, including the emergence and growth of the credit derivatives markets, has made the financial system and economy more resilient. But he also warned that these innovations have not eliminated systemic risk. Both market participants and public authorities need to think carefully about how

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