Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge
Macro Musings with David Beckworth
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The Role of Policy in the Bubble
David Frum: I enjoyed reading the chapter and I enjoyed the case studies, Japan, the late 80s to early 90s and then the internet bubble late 90s. Let me ask this question because you note in the case of Japan, there was some policy involved as well, right? They lowered rates to make a Japan because of these trade issues. Is that something that plays a part of these stories or bubbles independent of developments like that? It can absolutely play a bubble again. That's something that we don't spend too much time on because again, we're trying to teach a concept.
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