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
- Great story on gender equality (er, lack thereof) in professional labor markets in Japan
- More annals of correlations wrongly attributed as causation: The more equal women and men are, the less they want the same things
- In happened sooner than I thought: Baobab beer in microbrewery in New Jersey
- Building housing in San Jose
- Readings on immigration issues in the United States
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