I have often disagreed with the views of University of Chicago Professor John Cochrane over the paste five years. However, his latest oped in the Wall Street Journal is spot on.
In the oped Cochrane questions the rational for the increasingly common view that central banks should pursue “macroprudential” policies to reduce the risks in the financial sector.
This is Cochrane:
Interest rates make the headlines, but the Federal Reserve’s most important role is going to be the gargantuan systemic financial regulator. The really big question is whether and how the Fed will pursue a “macroprudential” policy. This is the emerging notion that central banks should intensively monitor the whole financial system and actively intervene in a broad range of markets toward a wide range of goals including financial and economic stability.
For example, the Fed is urged to spot developing “bubbles,” “speculative excesses” and “overheated” markets, and then stop…
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Utopia, you are standing in it! 
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