Must-Read: Josh Bivens and Dean Baker (2016): The Wrong Tool for the Right Job: “Raising interest rates is a poor strategy for managing asset bubbles… http://cepr.net/images/stories/reports/bubbles-2016-05.pdf …Low interest rates did not cause the housing bubble of the early 2000s and higher interest rates would have been ineffective at preventing it. To deflate an asset bubble … Continue reading Must-Read: Josh Bivens and Dean Baker (2016): The Wrong Tool for the Right Job