This view has also been severely criticised, because it is assumed to lead to asymmetric monetary policy which is too expansionary on average: it does not constrain asset price rises, but is expansionary when these prices decline. Following the crisis, there are naturally more advocates of the idea that monetary policy, besides regular monitoring of inflation, should also pay increasing attention to asset prices.
Given the importance of these variables as inputs into the pricing of financial assets, it’s no surprise that greater investor certainty about their future values has in turn given investors more certainty about the future value of asset prices.