Financial Times FT.com

Greenspan doctrine on asset prices questioned

By Krishna Guha in London

Published: March 28 2008 02:00 | Last updated: March 28 2008 02:00

The Federal Reserve may have to rethink the Greenspan doctrine that a central bank should not try to target asset prices in the aftermath of the housing bust, Gary Stern, president of the Minneapolis Fed, suggested yesterday.

While he had not yet changed his opinion on the subject, Mr Stern said: "I am reviewing this conclusion in the wake of the fallout from the decline in house prices and from the earlier collapse of prices in technology stocks."

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