Asset Prices and Monetary Policy
John Y. Campbell
University of Chicago Press, Nov 15, 2008 - Business & Economics - 392 pages
Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system.
The contributors examine how central bankers determine their policy prescriptions with reference to the fluctuating housing market, the balance of debt and credit, changing beliefs of investors, the level of commodity prices, and other factors. At a time when the public has never been more involved in stocks, retirement funds, and real estate investment, this insightful book will be useful to all those concerned with the current state of the economy.
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The Role of Learning
3 Optimal Monetary Policy with Collateralized Household Debt and Borrowing Constraints
4 Inflation Illusion Credit and Asset Prices
5 Learning Macroeconomic Dynamics and the Term Structure of Interest Rates
The Value of Publishing Central Bank Interest Rate Projections
7 The Effect of Monetary Policy on Real Commodity Prices
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