STONE MOUNTAIN, Ga. — The challenge facing regulators following the 2008 financial crisis is how to build an effective system that can detect financial crises in the making, rather than simply conducting an analysis after a meltdown has occurred, Minneapolis Federal Reserve Bank President Narayana Kocherlakota said Tuesday.

Moderating a panel at the Atlanta Fed's Financial Markets Conference, Kocherlakota said the question confronting regulators is that "as we move through time, what are the danger signals, what are we supposed to be thinking about, and how do we build the right kind of electronic eye (in the sky)?"

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