Tags: Fed | Dudley | Global | Policy

Fed's Dudley Urges More Global Policy Coordination

Tuesday, 08 May 2012 09:50 AM

Federal Reserve Bank of New York President William C. Dudley called for greater international coordination of economic and regulatory policies to improve the stability of the world financial system.

“We need to understand where greater global perspective is required and we need to apply that perspective consistently across jurisdictions in a timely manner,” Dudley said in the text of remarks given in Zurich.

Otherwise, “we won’t achieve all the benefits that are possible from global specialization and we will continue to run significant risks with respect to financial stability.”

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

Dudley said transparency in economic policy helps improve international cooperation, as authorities better understand the goals of counterparts in other nations.

He gave the example of the Fed, which is trying to “provide greater clarity” about its inflation target and emphasizes that actions such as purchases of government securities are driven by monetary policy goals and won’t “continue beyond the moment they become inconsistent with our dual mandate objectives,” he said.

Dudley also called for global standards for so-called central counterparty clearinghouses that would clear standardized over-the-counter derivatives trading around the world. Resolution regimes must also be developed for globally systemic financial institutions, he said.

Editor's Note: You Owe It to Yourself to Know What Obama and Bernanke Are Hiding From Americans

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2012-50-08
Tuesday, 08 May 2012 09:50 AM
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