Asset Prices, Nominal Rigidities, and Monetary Policy
Should monetary policy respond to asset prices? This paper analyzes this question from the vantage point of equilibrium determinacy.
JEL Classification: E31, E52
Key Words: monetary policy
Suggested citation: Carlstrom, Charles T., and Timothy S. Fuerst, 2004. "Asset Prices, Nominal Rigidities, and Monetary Policy," Federal Reserve Bank of Cleveland, Working Paper no. 04-13.