Finding the Right Tool for Dealing with Asset Price Booms - speech by Adam Posen

He rejects the notion that monetary policy should be used to tackle asset prices, and believes other tools are needed and better suited for the task. In addition to macroprudential policies - such as those outlined in a recent Bank of England discussion paper - Adam Posen suggests there is merit in considering tools that tackle asset prices directly. In particular, he discusses the idea of an automatic stabiliser for housing prices.

Press release