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Troubled by bubbles: Central bankers re-examine the hands-off approach

By Krishna Guha

Published: May 15 2008 19:45 | Last updated: May 15 2008 19:45

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In the aftermath of the dotcom crash in 2002, Alan Greenspan famously argued that central banks had little power to stop bubbles inflating and then bursting. All policymakers could do, said the then Federal Reserve chairman, was to “focus on policies to mitigate the fallout when it occurs”.

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