Monetary policy and stock market booms
By: Lawrence Christiano ... [et al.].
Contributors: National Bureau of Economic Research
Series: NBER working paper series -- working paper 16402; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16402.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "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"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/16/2010.

Includes bibliographical references.

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