Saturday, April 19, 2014

Perception is reality

Commenter Michael Byrnes hits the nail on the head at :

A big problem: If monetary policy is tightened inappropriately, so as to pop bubbles, it will produce (what appears to be) evidence that there were bubbles that needed popping. This will happen whether or not there are any bubbles.

1 comment:

  1. What does an appropriate tightening of monetary policy to pop bubbles look like?