We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production, jobs and price stability.
At the risk of some oversimplification, if the skill composition of our work force meshed fully with the needs of our increasingly complex capital-stock, wage-skill differentials would be stable.
While these tendencies were no doubt in train in the “old,” pre-1990s economy, they accelerated over the past decade as a number of technologies with their roots in the cumulative innovations of the past half-century began to yield dramatic economic returns.
Given our inevitably incomplete knowledge about key structural aspects of our ever-changing economy and the sometimes asymmetric costs or benefits of particular outcomes, a central bank.
![Alan Greenspan Quote - We ought to be opening up our borders to skilled labour from all parts of the world because [the state of the world is as follows: ].](https://minimalistquotes.com/wp-content/uploads/2022/08/we-ought-to-be-opening-up-our-borders-to-skilled-l-683x1024.jpg)
