Asset Pricing and Monetary Policy

Preprint OPEN
Bingbing Dong;
(2014)

This paper examines the role of money in understanding the behavior of asset prices and whether and how monetary policy should react to asset prices such as stock prices and equity premiums. To do so, I introduce money via the form of transaction cost into a production ... View more
  • References (56)
    56 references, page 1 of 6

    Pierluigi Balduzzi. In ation and asset prices in a monetary economy. Economics Letters, 53(1): 67{74, October 1996.

    Ravi Bansal and II Coleman, Wilbur John. A monetary explanation of the equity premium, term premium, and risk-free rate puzzles. Journal of Political Economy, 104(6):1135{71, December 1996.

    B. Barber and T Odean. Trading is hazadous to your wealth: the common stock investment performance of individual investors. Journal of Finance, 55:773{806, April 2000.

    Brad M. Barber, Yi-Tsung Lee, Yu-Jane Liu, and Terrance Odean. Just how much do individual investors lose by trading? Review of Financial Studies, 22(2):609{632, February 2009.

    John Beirne and Gabe de Bondt. The equity premium and in ation. Applied Financial Economics Letters, 4(6):439{442, 2008.

    Ben S. Bernanke and Mark Gertler. Should central banks respond to movements in asset prices? American Economic Review, 91(2):253{257, May 2001.

    Olivier Blanchard. Bubbles, liquidity traps, and monetary policy: Comments on jinushi et al, and on bernanke. Jan 2000.

    Richard Blundell, Martin Browning, and Costas Meghir. Consumer demand and the life-cycle allocation of household expenditures. Review of Economic Studies, 61(1):57{80, January 1994.

    Glenn W Boyle. Money demand and the stock market in a general equilibrium model with variable velocity. Journal of Political Economy, 98(5):1039{53, October 1990.

    W.A. Brock. Overlapping generations models with money and transactions costs. In B. M. Friedman and F. H. Hahn, editors, Handbook of Monetary Economics, volume 1 of Handbook of Monetary Economics, chapter 7, pages 263{295. Elsevier, October 1990.

  • Related Organizations (2)
  • Metrics
Share - Bookmark