| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5061256 | Economics Letters | 2010 | 4 Pages |
Abstract
We analyse the monetary policy implications of boom-bust cycles in asset prices using a Markov-switching rational expectations model. In our simulations, when a bubble bursts, the Taylor rule fails to achieve a soft landing, contrary to the optimal policy.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Fernando Alexandre, Pedro Bação, Vasco Gabriel,