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 Pigouís Theory of Cycles.
∑ Bernanke and Gertler, Should Central Banks Respond to Movements in Asset Prices?