Galí, Jordi; Gambetti, Luca - C.E.P.R. Discussion Papers - 2014
We estimate the response of stock prices to exogenous monetary policy shocks using a vector-autoregressive model with … response to an exogenous tightening of monetary policy, even though they experience a small decline in the short run. That … response is clearly at odds with the "conventional" view on the effects of monetary policy on bubbles, as well as with the …