Some believe identifying an asset bubble until it breaks is impossible, and thus monetary policy should not

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Some believe identifying an asset bubble until it breaks is impossible, and thus monetary policy should not be used to deflate asset bubbles. Stiglitz argues this argument is false because it ignores what economic concept?

a. The existence of uncertainty

b. The concept of multiple time periods

c. The idea of utility maximization

d. The difference between real and nominal income

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Money, Banking, Financial Markets and Institutions

ISBN: 978-0538748575

1st edition

Authors: Michael Brandl

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Question Posted: Jun 21, 2019 07:30 AM

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Some believe identifying an asset bubble until it breaks is impossible, and thus monetary policy should not

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