Adam Posen, a policymaker at the Bank of England, said asset bubbles are often impossible to spot in advance, so the view that monetary policy can prevent them is flawed. "We should not leap to believe that we can readily recognize bubbles, at least not in time to do anything pre-emptive about them," Posen told a financial gathering in the US. "It is currently beyond the ability of policymakers to discern in real time which booms are harmful and merit pre-emption and which are not, even taking recent horrible events into account."

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