Recently, there has been discussion in the United States and the European Union about the potential threat to financial stability posed by hedge funds. As my colleague David Longworth pointed out in a recent speech 3 , we at the Bank have looked at the effect of hedge funds on the stability of markets, in particular, markets in Canada.
BIS Review 138/2008  1  Economies Australia New Zealand US* Eurozone* Japan* China* India* Singapore South Korea  2007 4.2 3.2 2.0 2.6 2.1 11.9 9.3 7.7 5.0  2008(f) 2.5 0.6 1.4 1.2 0.5 9.7 7.8 3.0 4.3  2009(f) 2.1 1.3 -0.7 -0.5 -0.2 8.5 6.3 2.4 3.8  Source:*IMF World Economic Outlook – Nov-08; Consensus Forecast & Asia Pacific Consensus Forecast – Oct08  Impact of the financial crisis on Fiji’s economy •  Fiji’s financial sector: Overall, Fiji’s financial sector is quite insulated from the financial markets abroad and the banking, insurance and other financial institutions remains sound.