01766cas a2200253 a 4500 AALejournalIMF002127 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451875362 1018-5941 BD-DhAAL BD-DhAAL Jeanne, Olivier. Monetary Policy and Asset Prices : Does "Benign Neglect" Make Sense? / Olivier Jeanne, Michael Bordo. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The link between monetary policy and asset price movements has been of perennial interest to policymakers. In this paper, we consider the potential case for preemptive monetary restrictions when asset price reversals can have serious effects on real output. First, we present some stylized facts on boom-bust dynamics in stock and property prices in developed economies. We then discuss the case for a preemptive monetary policy in the context of a stylized model. We find that the optimal policy depends on the economic conditions in a complex, nonlinear way and cannot be summarized by a simple policy rule of the type considered in the inflation-targeting literature. Mode of access: Internet Bordo, Michael. IMF Working Papers; Working Paper ; No. 2002/225 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/225/001.2002.issue-225-en.xml IMF e-Library