Leaning against the bubble –Polish central bank intervenes to weaken local unit

Today Polish central bank (NBP) intervened to weaken local unit. Amid signs of bubble formation in fx market adopting “lean against” policy seems to be reasonable. Problem how the central banks should deal with potential asset bubbles is not trivial but there is growing consensus that aims of monetary policy should be broaden beyond targeting only consumer prices in efforts to stabilize economic growth. Here you can find NY FED president remarks at The Economic Club of New York on how the central banks should deal with asset bubbles.

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