San Francisco Fed president warns asset price bubbles are ‘here to stay’
The San Francisco Federal Reserve Bank president, John Williams, today argued that asset price bubbles and crashes "are here to stay", and said understanding how and why they form is crucial for policy-makers to address them.
Williams, speaking in California, said the traditional explanations of asset price growth – an increase in future dividend growth or a decrease in expected return – have little bearing on prices in the real world.
He pointed to survey data from the US housing and
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