This approach reflects the opinion that it is difficult to determine in real time whether the economy is undergoing a boom and to predict an asset price bust and, furthermore, that in order to slow an asset price boom, monetary policy has to be tightened so much that economic growth is severely affected.
The financial crisis has led to a broad rethinking of these issues. Given how costly the financial crash has been, it is not surprising that there is now greater support for the view that central banks have a role to play in preventing asset price bubbles. However, doubts remain whether monetary policy should play the primary role.