Should Monetary Policy Target Asset Bubbles?

Format:

Book

Government document

Author/Creator:

Library of Congress. Congressional Research Service

Language:

English

Subjects (All):

Business cycles.

Economic indicators.

Monetary policy.

Physical Description:

1 online resource

Contained In:

ProQuest U.S. Congressional Research Digital Collection

Place of Publication:

[Washington, D.C.] [publisher not identified] 2002

Summary:

Describes theory of asset bubbles, where the asset price-of stocks, bonds, and property is greater than the fundamental value; examines U.S. stock market at present; and addresses debate on whether Federal Reserve should be mandated to target asset bubbles and use monetary policy to pre-empt a stock market crash by raising interest rates to restrain aggregate demand before imbalances become serious. Provides bubble-free explanations of stock market, discusses goals of monetary policy, presents scenarios where Federal Reserve could prevent a bubble, and analyzes whether asset prices should be included in the measurement of inflation

Notes:

CRS Report

Record is based on bibliographic data in ProQuest U.S. Congressional Research Digital Collection (last viewed July 2010). Reuse except for individual research requires license from ProQuest, LLC

Vendor supplied data

Other Format:

Microfiche version Library of Congress. Congressional Research Service. Should Monetary Policy Target Asset Bubbles?

Publisher Number:

CRS-2002-GVF-0005

Access Restriction:

Restricted for use by site license