As for a power shortage in the summer, severe constraints on economic activity were avoided due to the efforts to save electricity and to level electricity usage.
It is still true that monetary policy is a rather blunt tool when it comes to combating asset price bubbles. Furthermore, one should not over-estimate central bankers’ ability to identify asset price bubbles in advance and to determine whether asset price booms have benign or malign reasons. However, financial market developments should be given greater weight when assessing risks to price stability.