Chile’s De Gregorio discusses how to tackle asset-price bubbles
José De Gregorio, governor of the Central Bank of Chile, on Friday said exchange rate intervention is a more effective policy response to the emergence of an asset-price bubble than interest rate hikes.
At the 16th Annual LACEA-LAMES Conference in Santiago, Chile, De Gregorio said: "Asset-price bubbles or distortions that may threaten financial stability should be considered when evaluating financial vulnerabilities, but not influence monetary policy if they do not have an impact on inflation
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