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Q11. Over the centuries, economies have been periodically subject to asset-price
Q11. Over the centuries, economies have been periodically subject to asset-price bubbles.The story
of the 2007-2009 financial crisis indicates how costly these bubbles can be.
What is asset-price bubbles? Should central banks respond to asset-price bubbles? Taking lessons
from 2007-2009 financial crisis, discuss both pros and cons of central banks responses to asset-
price bubbles
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