Monetary Policy and Asset Prices: Does "Benign Neglect" Make Sense?
- Topics:
- Investment and Capital Markets
- Source:
- International Monetary Fund
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Overview: This paper considers the potential case for preemptive monetary restrictions when asset price reversals can have can have serious effects on real output. First, it presents some stylized facts on the boom bust dynamics in stock and property prices in developed economies. It then discusses the case for a preemptive monetary policy in the context of stylized model.
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Format: PDF | Size: 911KB | Date: Dec 2002 | Pages: 28



