Title Monetary policy and asset prices : does "benign neglect" make sense? / Michael D. Bordo and Olivier Jeanne

Published [Washington, D.C.] : International Monetary Fund, ©2002

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Description 1 online resource (27 pages) : illustrations Series IMF working paper ; WP/02/225 IMF working paper ; WP/02/225 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 Bibliography Includes bibliographical references (pages 26-27) Notes 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 MiAaHDL digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL Print version record 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 Form Electronic book Author Jeanne, Olivier International Monetary Fund. Research Department ISBN 1283517779 9781283517775

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