This was the biggest contribution to the boom and bust in asset prices. It was not the only UHDVRQ ,DFFHSWWKDWWKHUDSLGLQFUHDVHLQWKHQXPEHURIOHQGHUVDVVRFLDWHGZLWKWKHGHUHJXODWLRQRI the finance sector also played a role. We could argue about the relative weights of these two factors if we wish, but the relevant fact for today is that neither of these two factors is present in the current expansion.
There is need to reconsider the content and pace of this process in view of the revised circumstances post-crisis. The case for shifting debt management function out of the central bank is made on several arguments such as resolving conflict of interest, reducing the cost of debt, facilitating debt consolidation and increasing transparency. These advantages are overstated. 40.