The increased uncertainty also implies that continued strong economic growth with low inflation is not outside the realm of possibility, and by adopting a cautious policy posture we may learn more clearly if that possibility is likely or remote. It should be clear that the creation of new jobs, by itself, is a welcomed development.
The fact that these investment entities are often domiciled in off-shore locations does not help their transparency either. But let me make it clear about one thing: the existence of the hedge fund industry benefits the international financial system. •  As active traders hedge funds provide liquidity to financial markets.