Caroline Baum: Until now, central bankers pretty much cared about asset bubbles only to the extent that asset prices affected their ability to deliver price stability. Otherwise, the operative doctrine was laissez-faire-’til-after-they-burst.
William Whitei: The most calamitous downturns were not preceded by any degree of inflation. There was no inflation in 1873-74, in the 1920s, in the 1980s in Japan and in the 1990s in Southeast Asia.
Edward Harrison: Consumer price inflation and inflation are not the same thing. Inflation comes from increasing the money supply and increased credit.
me: Inflation in an asset affects only those owning it. Consumer price inflation hurts everyone.
Comments gratefully appreciated. Please send them to me by any method of your choice and I'll include them here.