Michael Biggs and Thomas Mayer — How central banks contributed to the financial crisis

Even before the crisis, there were some who stressed that monetary policy should keep an eye on asset bubbles and the growth of credit. This column argues that the policy of inflation targeting, used widely in the 1990s and 2000s, did indeed lead to excessive credit growth that eventually bred financial instability.
VOX
How central banks contributed to the financial crisis
Michael Biggs, Global Economist at Deustche Bank, and Thomas Mayer, Senior Fellow at the Center of Financial Studies, Goethe Universität, Frankfurt