How do central banks react to wealth composition and asset prices?

We assess the response of monetary policy to developments in asset markets in the euro area, the US and the UK. We estimate the reaction of monetary policy to wealth composition and asset prices using: (i) a linear framework based on a fully simultaneous system approach in a Bayesian environment; and (ii) a nonlinear specification that relies on a smooth transition regression model.

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Year of publication:	2012
Authors:	Castro, Vítor ; Sousa, Ricardo M.
Published in:	Economic Modelling. - Elsevier, ISSN 0264-9993. - Vol. 29.2012, 3, p. 641-653
Publisher:	Elsevier
Subject:	Monetary policy rules \| Wealth composition \| Asset prices

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Type of publication:	Article
Classification:	E37 - Forecasting and Simulation ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011048713