I will discuss the results of
experiments using the model presented in Part IV of the course. This analysis
explores the possibility that even a reasonable monetary policy may
inadvertently add fuel to a stock market boom. Additional materials will be
posted soon.
Background material includes:
·
Beaudry and
Portier, An Exploration into Pigou’s Theory of Cycles.
·
Bernanke and
Gertler, Should Central Banks
Respond to Movements in Asset Prices?