Some people, who believe monetary policymakers should not address equity and property price bubbles, argue their position based on:

Question

Quizplus · Accepted Answer

The argument that monetary policymakers should not address equity and property price bubbles is often based on the idea that these bubbles are difficult or impossible to identify when they are developing. This is a legitimate concern, as it is true that bubbles can be extremely hard to detect in real time, and attempting to do so can lead to misguided interventions that do more harm than good. However, it is worth noting that there are some warning signs that can be observed in certain cases, such as rapidly rising prices or increasing leverage among market participants. Ultimately, policymakers must weigh the risks of intervention against the potential benefits, and make a judgment call based on the available evidence.

Some People, Who Believe Monetary Policymakers Should Not Address Equity