Monetary policy with asset price shocks and financial globalization
نویسنده
چکیده
This papers studies how the stabilization role of monetary policy in response to asset price shocks changes with the globalization of financial markets. Changes in asset prices affect production through a credit channel and monetary policy can stabilize the macro-economy with counter-cyclical interventions. The paper shows that, as financial markets become internationally integrated, stabilization policies shift their focus from domestic asset prices to worldwide asset prices.
منابع مشابه
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