It must make sense for the central banks to be pre-emptive and prevent the asset price bubble, so as to prevent the nasty, subsequent hangover.

ECONOMIST: The economy: Getting the point | The

Look only at Japan for a painful reminder of the implications of a burst asset-price bubble.

ECONOMIST: From angst to action?

The recession was caused not, as before, by inflation taking off, but by the bursting of an asset-price bubble.

ECONOMIST: The world economy

The Bank of Japan allowed deflation to develop when it held policy too tight, partly because it was worried about another asset-price bubble.

ECONOMIST: It is time for the Fed to start raising interest rates

For Mr Lindsey has made no secret of the fact that he considers the American economy to be suffering from an asset-price bubble.

ECONOMIST: The