Asset Prices and Monetary Policy
Asset Prices and Monetary Policy
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Abstract
Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In this book, scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system. The contributors examine how central bankers determine their policy prescriptions with reference to the fluctuating housing market, the balance of debt and credit, changing beliefs of investors, the level of commodity prices, and other factors.
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Front Matter
- Introduction
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1
Measuring the Macroeconomic Risks Posed by Asset Price Booms
Stephen G. Cecchetti
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2
Expectations, Asset Prices, and Monetary Policy: The Role of Learning
Simon Gilchrist andMasashi Saito
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3
Optimal Monetary Policy with Collateralized Household Debt and Borrowing Constraints
Tommaso Monacelli
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4
Inflation Illusion, Credit, and Asset Prices
Monika Piazzesi andMartin Schneider
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5
Learning, Macroeconomic Dynamics, and the Term Structure of Interest Rates
Hans Dewachter andMarco Lyrio
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6
Revealing the Secrets of the Temple: The Value of Publishing Central Bank Interest Rate Projections
Glenn D. Rudebusch andJohn C. Williams
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7
The Effect of Monetary Policy on Real Commodity Prices
Jeffrey A. Frankel
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8
Noisy Macroeconomic Announcements, Monetary Policy, and Asset Prices
Roberto Rigobon andBrian Sack
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9
Is Bad News about Inflation Good News for the Exchange Rate? And, If So, Can That Tell Us Anything about the Conduct of Monetary Policy?
Richard H. Clarida andDaniel Waldman
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Remarks
Donald L. Kohn and others
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End Matter
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