Should central banks respond to movements in asset prices?
Article Abstract:
A model and simulation are created to illustrate a monetary policy system where central banks make adjustments in response to shocks in asset markets, include the stock market. This aggressive inflation-targeting strategy is more flexible and very effective.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2001
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Banks and liquidity
Article Abstract:
Banks must strike a delicate balance to maintain liquidity. Enough reserves need to be maintained to cover unexpected runs by depositors. Yet banks must lend and invest money to make money. This balancing act is examined.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2001
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Conducting monetary policy at very low short-term interest rates
Article Abstract:
The conduct of monetary policy committees and central banks in communicating their plans during low short-term interest rate periods is discussed.
Publication Name: American Economic Review
Subject: Economics
ISSN: 0002-8282
Year: 2004
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