By contrast, Adam Posen, external member of the Bank of England’s Monetary Policy Committee, argues that from the angles of identification of bubbles, cleanup costs angle and the effectiveness of monetary instruments, leaning against the wind will not work (Posen, 2010).
He believes that we as yet know too little about the underlying mechanisms and therefore, the probabilities of making the wrong move are high, with obviously adverse consequences for the real economy. This largely seems an unresolved issue, which makes it difficult to translate into clear policy implications.