The Fed should not target asset bubbles because no one can reliably define a bubble or predict one in advance, and attempting to deflate bubbles imposes unaccountable costs on the Fed's other supposed targets.

normativepending

Speaker

Michael Belongia

Evidence Quote

define a bubble tell me the last time anyone has been able to predict one in advance

Source

Michael Belongia on the Fed 01/11/2010EconTalk
Created: 6/15/2026, 9:37:51 AM

My Notes

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