Hoffmann, Andreas (2009): Fear of depression - Asymmetric monetary policy with respect to asset markets.
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The paper suggests that during Greenspan’s incumbency the fear of depression caused the Federal Reserve to lower interest rates rapidly when asset price developments suggested a crisis potential. Whereas, when asset markets were growth-supporting, it did not raise interest rates. This asymmetry contributed to a downward-trend in interest rates which pushed US interest rates down to zero in the current crisis.
|Item Type:||MPRA Paper|
|Original Title:||Fear of depression - Asymmetric monetary policy with respect to asset markets|
|Keywords:||Fear of depression; Monetary policy; Taylor rule; Asset prices|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
|Depositing User:||Andreas Hoffmann|
|Date Deposited:||26. Sep 2009 07:19|
|Last Modified:||12. Feb 2013 14:33|
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