The article discusses whether the current crisis was caused by monetary policy or financial fragility in emerging markets. It argues that while low interest rates and excessive liquidity from monetary policy may have led to asset price bubbles, the real problem was the unrestrained financial innovation that created deep distortions in the financial system. The study suggests that while expansionary monetary policy can contribute to economic booms, it alone cannot explain the severity of financial collapses. Examples from countries like Canada and Chile show that even with low interest rates, they did not experience housing bubbles or financial crises due to sound financial systems.