Preemptive Bubble Blowing

In violent times
You shouldn't have to sell your soul
In black and white
They really, really ought to know
--Tears for Fears

Central planning hubris at its finest as former Fed chair Janet Yellen says that the Fed should inflate asset prices even more to make up for major busts. And she recommends that the central bank should signal that it will do so.

Naturally, the article does mention any potential downsides to a policy of preemptive bubble blowing, including ongoing economic distortions, massive inflation, and moral hazard.