Kleiner Auszug aus einem äusserst lesenswerten - aber nicht ganz leicht verdaulichen - Dokument:

..."In order to explore the issue of how monetary
policy should respond to variability in asset
prices, we incorporated nonfundamental move-
ments in asset prices into a dynamic macroeco-
nomic framework. To a first approximation at
least, we believe that our framework captures the
main concerns that policymakers have about pos-
sible bubbles in asset prices. In particular, in our
model, a large positive bubble exposes the
economy to the risk of a sharp market correction,
with adverse effects on aggregate demand and
economic activity. In the absence of an appro-
priate policy response, the resulting economic
contraction could be quite large. A severe mar-
ket drop in our model also weakens balance
sheets, induces financial distress, leads to fur-
ther declines in asset prices, and widens spreads
in bond markets. Although our framework omits
some of the microeconomic details of episodes
of stress (for example, nonprice credit rationing,
reduced liquidity of financial markets), and,
hence, is silent about certain types of
lender-of-last- resort interventions that the cen-
tral bank might undertake, we believe that these
omissions are unlikely to affect our central con-
clusions about aggregate stabilization policy."...


Gruss
Engulfing
<ul> ~ Monetary Policy and Asset Price Volatility</ul>
<center>

<HR>

</center>