When asked if he was concerned by a potential housing bubble or other asset bubble in the UK, Mr Cameron said that the Bank of England was fully independent, and that it was the Bank's job to "identify" and to "deal with" any asset bubble.
The increase raises other concerns about asset bubbles, however.
That, however, would be a signal that the Fed has succeeded; it can then tighten policy.Another potential cost is that by driving the dollar down, QE merely shifts the burden of growth to other countries, perhaps fueling asset bubbles in their markets in the process.
Brazil and other nations are already warning of "asset bubbles" — rising prices for real estate and other investments — that could create conditions similar to those that led to the bust in the United States three years ago.
It would watch for asset bubbles and other dangers to the financial system.
The finance ministers agreed on Tuesday to create agencies overseeing insurance, banking and market trading, as well as a European Systemic Risk Board to watch for asset bubbles and other dangers to the financial system.
Even Britain and America could face sharply higher borrowing costs.Big emerging economies face the opposite problem: the spectre of asset bubbles and other distortions as governments choose, or are forced, to keep financial conditions too loose for too long.
Although, like most of the world, these countries did have asset bubbles and other excesses during the boom years, they didn't cause the world recession that sent their deficits skyrocketing.
The first woman to chair the Fed faced no shortage of skeptics who called for a relatively early end to the Fed's extraordinary easy-money policies, on the plausible grounds that they created a risk of asset bubbles and other capital-market distortions.
