How Should Central Banks Respond to Inflating Real Estate Bubbles: A Qualitative Assessment of Industry Professionals’ Perceptions

Central Banks do not respond to inflating real estate bubbles, but abide a policy that ‘mops up’ the damage after their collapse with the conventional tools of monetary policy. The financial crisis of 2008 disclosed the flaws of this method, which triggered a controversial debate among policymakers and economists. Currently there is an elevated...