Central bankers struggle with notion they must prick asset bubbles

Mar 30, 2010

Last night in Hong Kong, Charles Evans of the Federal Reserve and colleagues from the Bank of England and Bank of Japan discussed the challenges central bankers face as pressure builds for them to preempt the next financial crisis.

The credit crisis of 2007-2008 could lead central banks to be charged with the task of ensuring financial-market or financial-institution stability, and it is a role that central bankers seem reluctant to take.

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