Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key institutions for achieving these goals. In "Asset Prices and Monetary Policy", leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system.The contributors examine how central bankers determine their policy prescriptions with reference to the fluctuating housing market, the balance of debt and credit, changing beliefs of investors, the level of commodity prices, and other factors. At a time when the public has never been more involved in stocks, retirement funds, and real estate investment, this insightful book will be useful to all those concerned with the current state of the economy.
John Y. Campbell is the Morton L. and Carole S. Olshan Professor of Economics at Harvard University and a research associate of the NBER. He is the author of The Econometrics of Financial Markets, Strategic Asset Allocation, and Risk Aspects of Investment-Based Social Security Reform, the last also published by the University of Chicago Press.