Chile's De Gregorio on handling bubbles

The lesson from the present crisis is that we cannot wait for asset-price bubble to burst before addressing its effects, said Jose De Gregorio, the governor of the Central Bank of Chile.

Speaking at a business school in Santiago, he said that the approach of dealing with the consequences of bubbles after they burst may have worked with technological bubble of the early 2000s, but the real-estate boom is a proof that this approach is flawed.

In future, the focus should be on risk regulation and

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account