000			02341cam a22003377 4500
001			w8966
003			NBER
005			20211020113209.0
006			m o d
007			cr cnu||||||||
008			210910s2002 mau fo 000 0 eng d
100	1		_aBordo, Michael D. _96595
245	1	0	_aBoom-Busts in Asset Prices, Economic Instability, and Monetary Policy / _cMichael D. Bordo, Olivier Jeanne.
260			_aCambridge, Mass. _bNational Bureau of Economic Research _c2002.
300			_a1 online resource: _billustrations (black and white);
490	1		_aNBER working paper series _vno. w8966
500			_aMay 2002.
520	3		_aThe link between monetary policy and asset price movements has been of perennial interest to policy makers. In this paper we consider the potential case for pre-emptive monetary restrictions when asset price reversals can have serious effects on real output. First, we provide some historical background on two famous asset price reversals: the U.S. stock market crash of 1929 and the bursting of the Japanese bubble in 1989. We then present some stylized facts on boom-bust dynamics in stock and property prices in developed economies. We then discuss the case for a pre-emptive monetary policy in the context of a stylized 'Dynamic New Keynesian' framework with collateral constraints in the productive sector. We find that whether such a policy is warranted depends on the economic conditions in a complex, non-linear way. The optimal policy cannot be summarized by a simple policy rule of the type considered in the inflation-targeting literature.
530			_aHardcopy version available to institutional subscribers
538			_aSystem requirements: Adobe [Acrobat] Reader required for PDF files.
538			_aMode of access: World Wide Web.
588	0		_aPrint version record
690		7	_aE52 - Monetary Policy _2Journal of Economic Literature class.
690		7	_aN20 - General, International, or Comparative _2Journal of Economic Literature class.
700	1		_aJeanne, Olivier. _913604
710	2		_aNational Bureau of Economic Research.
830		0	_aWorking Paper Series (National Bureau of Economic Research) _vno. w8966.
856	4	0	_uhttps://www.nber.org/papers/w8966
856			_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w8966
942			_2ddc _cW-PAPER
999			_c339225 _d297787