Such potential conflict does not imply that these objectives cannot be balanced  BIS central bankers’ speeches  3  simultaneously. To add another dimension, policies pursuing the above three objectives may also impact the growth objective and interplay these objectives could be called as “New Quadrilemma”. For example, the debt consolidation pursued during slowdown phase may turn fiscal policy pro-cyclical impacting growth adversely.
Specifically, in relation to hedge funds, there are essentially two issues that regulators need to address: •  The position of investors who are entrusting their money to these funds. In our view, this is essentially about ensuring there is sufficient disclosure to allow investors to make informed judgements about the risks and returns.