Fed chairman reconsiders stance on bursting bubbles

The Federal Reserve and leading economists are rethinking the policy on popping economic bubbles. "The last decade has shown that bursting bubbles can be an extraordinarily dangerous and costly phenomenon for the economy, and there is no doubt that as we emerge from the financial crisis, we will all be looking at that issue and what can be done about it," Fed Chairman Ben S. Bernanke said. The bursting of the housing bubble and cheap credit associated with it fueled the current financial crisis.

View Full Article in:

Wall Street Journal (tiered subscription model), The

Published in Brief: