Small countries, including Hong Kong, have on occasion felt as though hedge funds were singling them out for rough treatment, and that the resources available to hedge funds far exceed those of a small country seeking to maintain, for macroeconomic management reasons, a particular constellation of interest rates and exchange rates.
BIS Review 85/2006  1  I suspect that both the supporters and the critics have, at times, overstated the arguments. But, in any event, like them or not, hedge funds and other leveraged entities are here to stay. For the most part, the entities in question are essentially those financial investment vehicles which are outside the normal prudential regulatory net.