Should monetary policy respond to asset price misalignments?

Economic Modelling

Volumn 22, Issue 6, 2005, Pages 1105-1121

  Kontonikas, Alexandros ^a   Ioannidis, Christos ^b  

^a UNIVERSITY OF GLASGOW   (United Kingdom)

^b UNIVERSITY OF BATH   (United Kingdom)

Author keywords

Asset prices; Monetary policy

Indexed keywords

EID: 27644587133     PISSN: 02649993     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.econmod.2005.07.004     Document Type: Article

References (34)

1. L. Ball Policy rules for open economies John in: B. Taylor (Eds) Monetary Policy Rules 1999 University Chicago Press
2. N. Batini G. Haldane Forward-looking rules for monetary policy Bank of England Working Paper 91 1999
3. N. Batini E. Nelson When the bubble bursts: Monetary policy rules and foreign exchange market behavior Bank of England Working Paper 2000
4. B. Bernanke M. Gertler Monetary policy and asset price volatility Economic Review 1999 Federal Reserve of Kansas City 17-51 Fourth Quarter
5. B. Bernanke M. Gertler Should central banks respond to movements in asset prices? American Economic Review Papers and Proceedings 91 2001 253-257
6. M. Bordo O. Jeanne Boom-busts in asset prices, economic instability, and monetary policy NBER Working Paper 8966 2002
7. C. Borio P. Lowe Asset prices, financial and monetary stability: exploring the nexus BIS Working Papers 114 2002
8. F. Canova G. De Nicolo Stock returns, term structure, inflation and real activity: An international perspective CEPR Discussion Papers 1614 1997
9. S. Cecchetti H. Genberg J. Lipsky S. Wadhwani Asset Prices and Central Bank Policy 2000 International Centre for Monetary and Banking Studies London
10. R. Clarida J. Galì M. Gertler The science of monetary policy: A new Keynesian perspective Journal of Economic Literature 37 1999 1661-1707
11. M. Conover G.R. Jensen R.R. Johnson Monetary environments and international stock returns Journal of Banking and Finance 23 1999 1357-1381
12. Detken, K., Smets, F., 2003. Asset Price Booms and Monetary Policy, mimeo.
13. E. Fama Stock returns, real activity, inflation and money American Economic Review 71 1981 545-565
14. P. Garber Famous First Bubbles: The Fundamentals of Early Manias 2000 MIT Press Cambridge
15. S. Gilchrist J. Leahy Monetary policy and asset prices Journal of Monetary Economics 49 2002 75-97
16. C. Goodhart B. Hofmann Financial variables and the conduct of monetary policy Sveriges Riksbank Working Paper 12 2000
17. C. Goodhart B. Hofmann Asset prices, financial conditions, and the transmission of monetary policy Paper Presented at the Conference on 'Asset Prices, Exchange Rate, and Monetary Policy' 2001 Stanford University March
18. C. Goodhart B. Hofmann Deflation, credit and asset prices Hong Kong Institute for Monetary Research Working Paper 13/2003 2003
19. IMF When bubbles burst World Economic Outlook 2003 61-94 (Chapter 2 April)
20. O. Issing Monetary Stability, Financial Stability and the Business Cycle 2003 Bank for International Settlements Basle
21. N. Kiyotaki J. Moore Credit cycles Journal of Political Economy 105 2 1997 211-248
22. P. Klein Using the generalized Schur form to solve a multivariate linear rational expectations model Journal of Economic Dynamics and Control 24 2000 1405-1423
23. N. Kocherlakota Creating business cycles through credit constraints Federal Reserve Bank of Minneapolis Quarterly Review 24 2000 2-10
24. A. Kontonikas A. Montagnoli Has monetary policy reacted to asset price movements? Evidence from the United Kingdom Ekonomia 7 2004
25. Kortian, T., 1995. 'Modern approaches to asset price formation: A survey of recent theoretical literature', Reserve Bank of Australia, Research Discussion Paper, Report Number 9501.
26. B. McCallum Solutions to linear rational expectations models: A compact exposition Economic Letters 61 1998 143-147
27. B. McCallum Should monetary policy respond strongly to output gaps? American Economic Review Papers and Proceedings 91 2001 258-262
28. B. McCallum E. Nelson An optimizing IS-LM specification for monetary policy and business cycle analysis Journal of Money, Credit and Banking 31 1999 296-316
29. A. Orphanides R. Porter D. Reifschneider R. Tetlow F. Finan Errors in the measurement of the output gap and the design of monetary policy Journal of Economics and Business 52 2000 117-141
30. G. Rudebusch L. Svensson Policy rules for inflation targeting John in: B. Taylor (Eds) Monetary Policy Rules 1999 University Chicago Press
31. J.B. Taylor Discretion versus policy rules in practice Carnegie-Rochester Conference Series on Public Policy 39 1993 195-214
32. W. Thorbecke On stock market returns and monetary policy Journal of Finance 52 1997 635-654
33. A. Vile Asset price crises and banking crises: Some empirical evidence BIS Conference Paper Series on: International Financial Markets and the Implications for Monetary and Financial Stability 2000
34. M. Woodford Optimal monetary policy inertia NBER Working Paper 7261 1999