TY  - BOOK
AU  - Jeanne,Olivier D.
AU  - Bordo,Michael D.
AU  - Jeanne,Olivier D.
TI  - Monetary Policy and Asset Prices: Does "Benign Neglect" Make Sense? 
T2  - IMF Working Papers; Working Paper
SN  - 1451875363 :
SN  - 1018-5941
PY  - 2002///
CY  - Washington, D.C.
PB  - International Monetary Fund
KW  - Bubbles
KW  - imf
KW  - Comparative
KW  - Credit Crunch
KW  - Economic History: Financial Markets and Institutions: General
KW  - Inflation
KW  - International
KW  - Finland
KW  - Italy
KW  - Japan
KW  - Spain
KW  - United States
N2  - 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
UR  - http://elibrary.imf.org/view/IMF001/04689-9781451875362/04689-9781451875362/04689-9781451875362.xml
UR  - http://www.imfbookstore.org/IMFORG/9781451875362
ER  -