How central banks contributed to the financial crisis

Biggs, Michael, Mayer, Thomas.

 Even before the crisis, there were some who stressed that monetary policy should keep an eye on asset bubbles and the growth of credit. This column argues that the policy of inflation targeting, used widely in the 1990s and 2000s, did indeed lead to excessive credit growth that eventually bred financial instability.

Πηγή: Voxeu

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