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Stabilizing asset prices should be goal of monetary policy

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Question

Economists have been grappling with a debate regarding the extent to which stabilizing asset prices should be a goal of monetary policy. The three goals of the Federal Reserve Board are to have economic growth, full employment, and price stability. In your opinion, should monetary policy be used to stabilize asset prices given the volatility of the market in the past couple of years?

Reference no: EM132808732

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