I will then list some empirical stylized facts about past asset price boom and bust cycles to provide the background for reviewing the recommendations obtained from the economics literature on what is the best monetary policy reaction to asset price booms.
As battle-scarred survivors of a financial crisis and deep recession, community bankers today confront a frustratingly slow recovery, stiff competition from larger banks and other financial institutions, and the responsibility of complying with new and existing regulations. Some observers have worried that these obstacles – particularly complying with regulations – may prove insurmountable.