I am therefore paying particular attention to the risk that, if the current large-scale monetary easing policy were to be protracted or such policy strengthened by additional measures, the associated side effects would instead outweigh the positive effects, and this would undermine economic stability in the long run.
It is possible that people may match increase in price of stocks with previous events leading to a dynamic feedback loop even though fundamentals may not warrant any significant change in prices. Biased self-attribution 8. Feedback loops can be explained with yet another principle of psychology called “biased self-attribution”.