CASE Policy Briefs, central banks, Global/Multiregional, Macroeconomics and macroeconomic policy, monetary policy

No, the central banks didn't do it

Lately, a popular view has emerged that the global financial crisis was caused by lax monetary policy in the U.S. (and elsewhere). Although, lax monetary policy can be attributed to the bout of inflation that preceded the crisis, it cannot be blamed for the housing price bubble and the ensuing subprime debacle.