Why Central Banks Should Not Burst Bubbles


  • *This is intended to appear alongside an essay by Nouriel Roubini, ‘Why Central Banks Should Burst Bubbles’. I am grateful for discussions of prior related research with Tamim Bayoumi, Charles Bean, Michael Bordo, Gordon de Brouwer, Stephen Cecchetti, Malcolm Edey, Charles Goodhart, Olivier Jeanne, Anil Kashyap, Kenneth Kuttner, Frederic Mishkin, Michael Prell, Anthony Richards and Edwin Truman. Samantha Davis and Daniel Popov Gould provided research assistance with those efforts. I remain solely responsible for the opinions and any errors herein.

Adam S. Posen
Senior Fellow
Institute for International Economics
1750 Massachusetts Ave., NW
Washington, DC 20036-1903
E-mail: aposen@iie.com