The other is that policy-makers can deal effectively with the bursting of the bubble through aggressive ex-post monetary and fiscal policy. The key common element of all financial crises is that they are preceded by a period of positive economic performance.
Mr. Tietmeyer’s address at the International Frankfurt Banking Evening Co-speaker’s address by the President of the Deutsche Bundesbank, Prof. Hans Tietmeyer, following the lecture “Achieving a Credible Currency for Europe” held by Dr. Sirkka Hämäläinen, Governor of the Bank of Finland at the International Frankfurt Banking Evening on 5/5/98.