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March 12, 2013

Can the Fed Burst the Next Bubble Before It’s Too Late?

The Fed is trying to figure out how to respond to asset price bubbles:
Can the Fed Burst the Next Bubble Before It’s Too Late?
The "Geenspan doctrine" is dead, but will it be replaced by the "Bernanke doctrine" or the "Stein doctrine"? I argue that both of these approaches miss an essential element for successful anti-bubble policy.

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