Gust, Christopher; López-Salido, J David - C.E.P.R. Discussion Papers - 2010
implications of alternative monetary policy rules. As emphasized by the microfinance literature, variation in risk arises because … with empirical evidence generates a decline in the equity premium following an unanticipated easing of monetary policy. An … important result that emerges from our analysis is that countercyclical monetary policy generates higher average welfare than …