It is near the borders to Switzerland, Germany and Liechtenstein.

And a striking new voice has joined the fray Kara Stein, a commissioner at the Securities and Exchange Commission (SEC). Stein delivered a far reaching speech in June, in which she argued that systemic risk must become a more central responsibility for financial market regulators.

TOKYO The American economist Herbert Stein once said that if something cannot continue forever, it will not.

They have kids of their own, and they've achieved a genetic miracle by marrying beautiful people, so their grandmoms look like Gertrude Stein, their daughters looks like Halle Berry I don't know how they've done that.

As a result, only the Fed s interest rate instrument, Stein and Tarullo argue, can get into all of the financial system s cracks.

If something cannot go on forever, as the economist Herbert Stein famously put it, it will stop.

Another Fed governor, Jeremy Stein, has pointed out that foreign banks have dollar liabilities of roughly 8 trillion, much of it short term wholesale funding.

OSLO With Jeremy Stein s return to his academic post at Harvard at the end of May, the US Federal Reserve Board lost its leading proponent of the view that monetary policy should be used to lean against financial excesses.

TOKYO The American economist Herbert Stein once said that if something cannot continue forever, it will not. In the case of imbalances between China and the West, however, the cut off point still looks to be a long time in the future.

The nature of externalities means that financial firms do not care about the costs that they may create for others. Big and small firms can create a wide variety of externalities, and these have to be examined carefully and dispassionately exactly as Stein is recommending.

The systemic risks in this case do not necessarily lie with an individual firm rather, the issue is the way in which a particular market has come to operate. Stein has some detailed and credible ideas about how to make such operations less risky for the system as a whole.

But another Fed faction led by Governors Jeremy Stein and Daniel Tarullo argues that macro prudential tools are untested, and that limiting leverage in one part of the financial market simply drives liquidity elsewhere.

Many finance experts including Alon Raviv, Mark Flannery, Anil Kashyap, Raghuram Rajan, Jeremy Stein, Ricardo Caballero, Pablo Kurlat, Dennis Snower, and the Squam Lake Working Group have been making proposals along the lines of contingent capital.

In principle, the answer is straightforward. If a central bank has two policy targets, then it needs two instruments monetary policy to influence aggregate demand, and regulatory policy to limit financial risks.