Monetary Policy Can Fuel Unexpected Bubbles: Fed's John Williams - Presented by: The Aol. On Network

A top Federal Reserve official warned that monetary and regulatory policies can fuel asset bubbles that can then pop, leaving economic wreckage in their wake. Contrary to accepted theory, asset-price crashes like the house-price collapse that set off the Great Recession are not a product of some external shock, but are inherent in the way financial markets work, San Francisco Fed President John Williams said in remarks prepared for delivery to the National Association for Business Economics.



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