TY  - BOOK
AU  - Bernanke,Ben
AU  - Gertler,Mark
ED  - National Bureau of Economic Research.
TI  - Monetary Policy and Asset Price Volatility
T2  - NBER working paper series
PY  - 2000///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - February 2000; Hardcopy version available to institutional subscribers
N2  - We explore the implications of asset price volatility for the management of monetary policy. We show that it is desirable for central banks to focus on underlying inflationary pressures. Asset prices become relevant only to the extent they may signal potential inflationary or deflationary forces. Rules that directly target asset prices appear to have undesirable side effects. We base our conclusions on (i) simulation of different policy rules in a small scale macro model and (ii) a comparative analysis of recent U.S. and Japanese monetary policy
UR  - https://www.nber.org/papers/w7559
UR  - http://dx.doi.org/10.3386/w7559
ER  -