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These brief essays delve into the economic issues of the day for a generally informed readership.

2010, No. 11 (Posted 2010-04-28)

Monetary Policy and Asset Prices

by Brett W. Fawley and Luciana Juvenal

The housing market crisis is the latest reminder that asset prices can and do run wild at rates capable of negative effects on real economic activity. Not surprisingly, this has reinvigorated debate over whether central banks should respond to asset price bubbles.

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