Asset prices and central bank policy

680 citations recorded by the source corpus.

Subfields: Finance

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Asset Prices, Financial Imbalances and Monetary Policy: Are Inflation Targets Enough? (2003, neutral): “Thus both Bernanke and Gertler (1999) (2001) and Cecchetti et al. (2000) employ a dynamic New Keynesian model, modified to allow for credit market frictions and exogenous asset price bubbles.”
Monetary Policy, Market Excesses and Financial Turmoil (2008, neutral): “See, for example, Cecchetti et al. (2000) or Ingves (2007).”
Concepts of equilibrium exchange rates (2005, background): “For an extended discussion of the issues surrounding the appropriate policy response to asset price bubbles, see Bernanke and Gertler (1999) Cecchetti et al (2000).”
Why Central Banks Should Burst Bubbles (2006, background): “Cecchetti et al. (2000) challenged this result by showing that, in the context of exogenous deterministic bubbles, looking at a wider range of monetary policy reaction functions – where the weights on inflation, growth and stock price bubbles are chosen with goals of picking the optimal interest…”
Leaning Against Boom-Bust Cycles in Credit and Housing Prices (2013, background): “Thus, unless asset prices signal changes in expected inflation, an anti-inflationary monetary policy is generally optimal in such environments.2 Cecchetti et al. (2000) analyze rules that minimize a weighted sum of output and inflation variability to find that macroeconomic stabilization can be…”