NettetToday I want to tackle a difficult subject: How should central bankers deal with potential asset price bubbles. As always, my remarks do not necessarily reflect the views of the Federal Open Market Committee or the Federal Reserve System. As I see it, we need to reexamine how central banks should respond to potential asset bubbles. Nettetwhich have experienced asset price volatility. Section V concludes with some discussion of additional issues. An appendix provides more details of the simulation model employed in sections II and III. Section I. Asset Prices, the Economy, and Monetary Policy: An Overview Asset prices, including in particular the prices of equities and
Central banks should prick asset bubbles Financial Times
Nettetrespond to the implications of asset-price changes for its macro goal variables. But also, according to this view, the Fed should try to gently steer asset prices away from a presumed bubble path. For example, seeing a rapid appreciation of stock prices, not only should the Fed tighten enough to offset NettetTo illuminate the run-up phase, our survey draws on the large literature on bubbles and asset price booms. To understand the crisis phase, we draw on models of ampli cation mechanisms that occur after a bubble bursts. Finally, we stress that the run-up and crisis phase cannot be seen in isolation they are two sides of the same coin. This has teacher\\u0027s corner
ASSET PRICE BUBBLES: New research on the tough choices …
Nettet1. des. 2024 · An asset bubble occurs when the price of an asset, such as stocks, bonds, real estate, or commodities, rises at a rapid pace without underlying fundamentals to … NettetAsset Price and Debt Bubbles The concept of the MURI provides an alternative theoretical framework for situating discussions of inflation targeting, and it shows how interest-rate policy should be guided. However, this still leaves open the critical question of whether monetary policy should respond to asset price inflation in an inflation- NettetPricing Login to YUMPU News Login to YUMPU Publishing 13.07.2015 • Views south huntsville main business association