The Federal Reserve and price bubbles
Prompt: “Animal spirits”—optimism about and predictions for the current and future state of markets—can fuel increased spending on things like homes and financial instruments, even when those “spirits” are not based on concrete information.
If the Federal Reserve or other government entities feel that increased spending on real estate isn’t merited by actual economic conditions and is leading to an asset price bubble, in your opinion, should they intervene?
If the Federal Reserve or other government entities feel that increased spending on real estate isn’t merited by actual economic conditions and is leading to an asset price bubble, in your opinion, should they intervene?
