Getting your player ready...
WASHINGTON — Federal Reserve policymakers should deepen their understanding about how to combat speculative bubbles to reduce the chances of another financial crisis, the central bank’s outgoing vice chairman said Wednesday.
Donald Kohn said the worst crisis to hit the country since the 1930s points to the need for more research on how higher interest rates can be used to limit financial speculation. Kohn suggested that and other “homework assignments” in remarks prepared for a lecture at Davidson College in North Carolina.
