LONDON, April 30 A policymaker who is due to
become the Bank of England's chief economist said prices of
assets - such as houses - had more impact on the dynamics of an
economy than is commonly understood.
Asked by lawmakers about how monetary policy should react to
asset price bubbles, Andy Haldane said financial factors,
particularly asset prices, played a more central role in an
economy than was typically reflected in macro-economic models.
Haldane is due to leave his current role at the Bank in
overseeing potential risks to the economy from the banking
sector and will become chief economist in June. He will take a
seat on the BoE's rate-setting committee.
(Reporting by David Milliken and Huw Jones; writing by William