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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.

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