Wednesday, December 2, 2009

Bubble Fighter

WSJ article suggest that FED is likely to change its passive approach to building bubbles in asset prices. One problem is that economists don't have models that prescribe how much interest rates should go up when asset prices or financial leverage run to excess.

1 comment:

Doc Merlin said...

Sigh, idiots. Don't they know that actively bursting bubbles is as dangerous as promoting their growth?