Ms. Yellen stakes out her position in about as clear a language as you’ll see from a central banker: She believes that it would most likely be a bad idea to raise interest rates to fight financial excesses. Her focus, crucially, is not on preventing Wall Street from having ups and downs, but on making sure that those ups and downs don’t bring economic disaster.This focus on resilience differs from much of the public discussion, which often concerns whether some particular asset class is experiencing a “bubble,” and whether policy makers should attempt to pop the bubble. Because a resilient financial system can withstand unexpected developments, identification of bubbles is less critical.
Blogs I Follow
- How much is the Trump trade war helping African consumers of soybean?
- Recent reading: Beard, Twain, and Pinsker
- Should anti-vaccination parents be liable under tort law if their child infects a baby and kills them?
- Reading fiction because it is actually better than binge-watching
- Super Furry Animals – Run! Christian, Run!
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