Why might macroprudential regulation be more effective in managing asset price bubbles than monetary policy?
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Why might macroprudential regulation be more effective in managing asset price bubbles than monetary policy?
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There are several reasons why monetary policy may not be effective in eliminating asset price bubbles The main reason is that asset price bubbles are extremely difficult to identify in real time in many cases by the time there is a consensus among policymakers and the public that a bubble exists it is usually too late to implement policies to effectively deflate the bubble And even if an asset price bubble ...View the full answer
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Related Book For
Economics of Money Banking and Financial Markets
ISBN: 978-0134733821
12th edition
Authors: Frederic S. Mishkin
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