How asset price bubbles and the financial accelerator can combine

  1. Explain how asset price bubbles and the financial accelerator can combine to create a
    banking crisis. What kind of policies should central banks use to prevent crises?
  2. What are the transmission mechanisms of Quantitative Easing (QE) and how do they compare with those
    of conventional monetary policy? Was QE successful? Did it have
    any unintended consequences?