Narayana Kocherlakota, Columnist

How I Helped Inflate the Housing Bubble

Some say the Fed was responsible. Actually, buyers like me should take a lot of the blame.

June 14, 2016 at 1:32 PM UTC

Narayana Kocherlakota is a Bloomberg Opinion columnist. He is a professor of economics at the University of Rochester and was president of the Federal Reserve Bank of Minneapolis from 2009 to 2015.

Scene of a real estate mistake.
Photographer: Ariana Lindquist/Bloomberg

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People are still trying to figure out who was responsible for the run-up and subsequent collapse of U.S. housing prices that spawned the 2008 financial crisis. Some, for example, say it's the fault of the Federal Reserve, which kept interest rates low to combat the weak economy and low inflation of the early 2000s.

Actually, I have an admission to make: I should take some of the blame.