Fear of depression - Asymmetric monetary policy with respect to asset markets

The paper suggests that during Greenspan’s incumbency the fear of depression caused the Federal Reserve to lower interest rates rapidly when asset price developments suggested a crisis potential. Whereas, when asset markets were growth-supporting, it did not raise interest rates. This asymmetry contributed to a downward-trend in interest rates which pushed US interest rates down to zero in the current crisis.

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Year of publication:	2009-09-15
Authors:	Hoffmann, Andreas

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Type of publication:	Book / Working Paper
Language:	English
Notes:	Hoffmann, Andreas (2009): Fear of depression - Asymmetric monetary policy with respect to asset markets.
Classification:	E58 - Central Banks and Their Policies ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; D82 - Asymmetric and Private Information
Source:	BASE

Persistent link: https://www.econbiz.de/10015218321