By Douglas Evanoff, George Kaufman & Anastasios G. Malliaris
The successful performance of the U.S. economy during the ‘Great Moderation’ period of 1984 to 2006 appeared to have offered both the economics profession and policymakers the assurance that asset bubbles could be effectively managed with little or no real adverse economic impact. But the recent global financial crisis had a serious adverse impact on the U.S. and global economies, and has triggered a renewal of the debate about the impact of bubbles and the role of public policy in addressing them.
