NBER Working Paper No. Historical data and model simulations support the following conclusion. Inflation is low during stock market booms, so that an interest rate rule that is too narrowly focused on inflation destabilizes asset markets and the broader economy.

Adjustments to the interest rate rule can remove this source of welfare-reducing instability. For example, allowing an independent role for credit growth beyond its role in constructing the inflation forecast would reduce the volatility of output and asset prices.

Monetary Policy and Stock Market Booms - Federal Reserve Bank of Atlanta

Machine-readable bibliographic record - MARCRISBibTeX. About Us Contact Information Historical Archives. Monetary Policy and Stock Market Booms Lawrence ChristianoCosmin L.

IlutRoberto MottoMassimo Rostagno NBER Working Paper No. EFG Historical data and model simulations support the following conclusion. Bekaert, Hoerova, and Lo Duca w Risk, Uncertainty monetary policy and stock market booms Monetary Policy Schularick and Taylor cara deposit instaforex melalui bank mandiri Credit Booms Gone Bust: Monetary Policy, Leverage Cycles and Financial Crises, Bordo and Wheelock w Monetary Policy and Asset Prices: A Look Back at Australian native tube stock melbourne U.

National Bureau of Economic Research, Massachusetts Ave. Development of the American Economy. Economic Fluctuations and Growth.

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Monetary policy and stock market boom-bust cycles

Data Boston Census Research Data Center BRDC. He is also the Mitsui Professor of Economics at M.

Monetary policy and stock market booms

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