A Blast From Frederic Mishkin's Past: Asset Bubbles Are Totally Good For the Economy
I believe we know a paid hack when we see one. He's like an encyclopedia salesman for bubble blowing.
Yes he actually said this in the FT:
Because the second category of bubble does not present the same dangers to the economy as a credit boom bubble, the case for tightening monetary policy to restrain a pure irrational exuberance bubble is much weaker. Asset-price bubbles of this type are hard to identify: after the fact is easy, but beforehand is not. (If policymakers were that smart, why aren’t they rich?) Tightening monetary policy to restrain a bubble that does not materialise will lead to much weaker economic growth than is warranted. Monetary policymakers, just like doctors, need to take a Hippocratic Oath to “do no harm”.
Never forget 9/19/2008