What difference would focusing on asset prices make

Reference no: EM131130774

What Difference Would Focusing on Asset Prices Make? Suppose you believed the Fed should make its decisions by focusing partly on asset prices, such as stocks or prices of housing, and should have used monetary policy to offset both the stock market increase in the late 1990s and the housing price increases after 2002. How would your policy have affected interest rates and real output during the period in question? What would be the benefit of your policies?

Reference no: EM131130774

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