Monetary policy and asset prices : does "benign neglect" make sense? /

Monetary policy and asset prices : does "benign neglect" make sense? /

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Bibliographic Details
Author / Creator:	Bordo, Michael D.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2002.
Description:	1 online resource (27 pages) : illustrations
Language:	English
Series:	IMF working paper ; WP/02/225 IMF working paper ; WP/02/225.
Subject:	Prices -- Developed countries -- Effect of monetary policy on -- Econometric models. Stocks -- Prices -- Developed countries -- Econometric models. Real property -- Prices -- Developed countries -- Econometric models. Prices -- Developed countries -- Econometric models. Prices -- Econometric models. Real property -- Prices -- Econometric models. Developed countries.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12496612

Hidden Bibliographic Details
Other authors / contributors:	Jeanne, Olivier. International Monetary Fund. Research Department.
ISBN:	1283517779 9781283517775
Notes:	Includes bibliographical references (pages 26-27). Restrictions unspecified Electronic reproduction. [Place of publication not identified] : HathiTrust Digital Library, 2010. Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 digitized 2010 HathiTrust Digital Library committed to preserve Print version record.
Summary:	The link between monetary policy and asset price movements has been of perennial interest to policymakers. In this paper, we consider the potential case for preemptive monetary restrictions when asset price reversals can have serious effects on real output. First, we present some stylized facts on boom-bust dynamics in stock and property prices in developed economies. We then discuss the case for a preemptive monetary policy in the context of a stylized model. We find that the optimal policy depends on the economic conditions in a complex, nonlinear way and cannot be summarized by a simple policy rule of the type considered in the inflation-targeting literature.
Other form:	Print version: Bordo, Michael D. Monetary policy and asset prices. [Washington, D.C.] : International Monetary Fund, ©2002

Description
Summary:	The link between monetary policy and asset price movements has been of perennial interest to policymakers. In this paper, we consider the potential case for preemptive monetary restrictions when asset price reversals can have serious effects on real output. First, we present some stylized facts on boom-bust dynamics in stock and property prices in developed economies. We then discuss the case for a preemptive monetary policy in the context of a stylized model. We find that the optimal policy depends on the economic conditions in a complex, nonlinear way and cannot be summarized by a simple policy rule of the type considered in the inflation-targeting literature.
Physical Description:	1 online resource (27 pages) : illustrations
Format:	Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002.
Bibliography:	Includes bibliographical references (pages 26-27).
ISBN:	1283517779 9781283517775