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Interest rates of zero meant that central banks took to targeting asset prices – stocks and bonds – to boost spending.
"Each time he denies that he's targeting asset prices, he highlights the fact that equity prices are central to monetary policy at the moment," said Rory Robertson, an economist at Macquarie Bank in New York.
Second, the very same people who accuse the Fed of having been too loose then accuse it now of targeting asset prices, trying to boost the stock market rather than focusing on the real economy.
And that eventually leads to targeting asset prices.
Chairman Greenspan's position on targeting asset bubbles is that they are impossible to identify until after they burst.
And when Bear Stearns hit, I had begun to go back in history and say, "How do we get to the point where the fed is targeting asset prices instead of targeting either inflation or job creation?" If you look at the ECB, they have an easier job.
Similar(47)
Looking to the future, he believes that monetary authorities must do more to lean against excessive exuberance when the next boom is under way by targeting asset-price inflation and drawing up new rules for assessing the capital adequacy of banks.
The new sanctions, targeting assets of four Venezuelan governors allied with Mr. Maduro, come atop crippling American sanctions issued late last month against the state oil company, known as PDVSA, a crucial source of revenue for the Maduro government.
PLA tacticians know that a successful strike against a moving US aircraft carrier requires advanced space-based targeting assets and an ability to penetrate the US ballistic missile defence umbrella.
The Bank of Japan said it would target asset purchases of 80 trillion yen a year, or $734 billion, up from a previous range of ¥60 trillion to ¥70 trillion.
This is part of the broader discussion about how monetary policy officials should target asset prices, which "can be destabilizing in themselves", as Mr Hamilton puts it.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com