Monetary Policy and Rational Asset Price Bubbles

• 成果类型: Article
• 署名作者: Gali, Jordi
• 署名单位: Centre de Recerca en Economia Internacional (CREI); Pompeu Fabra University; Barcelona School of Economics
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/AER.104.3.721
• 发表日期: 2014
• 页码: 721-752
• 关键词: Overlapping generations; constraints; MODEL

摘要

examine the impact of alternative monetary policy rules on a rational asset price bubble, through the lens of an overlapping generations model with nominal rigidities. A systematic increase in interest rates in response to a growing bubble is shown to enhance the fluctuations in the latter, through its positive effect on bubble growth. The optimal monetary policy seeks to strike a balance between stabilization of the bubble and stabilization of aggregate demand. The paper's main findings call into question the theoretical foundations of the case for leaning against the wind monetary policies.