Both of these outcomes effectively describe a “boom and bust” monetary policy, which is the approach we set out to avoid. BIS Review 12/2000  4  Another variation of the argument that monetary policy should not have been tightened, or not by as much, is the appeal to US experience.
Proponents of this view claim that Chairman Greenspan has been doing the right thing by letting the US expansion run on, and not being deflected by more conventional voices calling for monetary restraint to avoid future inflation.