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What is Monetary Policy and Stock Prices Analysis about?

This paper examines the impact of temporal aggregation on monetary policy design within a New Keynesian framework with boundedly rational agents. It argues that responding to stock prices, particularly when real data is delayed, can enhance stability in both financial and real sectors. The authors extend existing models to highlight the importance of using high-frequency financial data to inform policy decisions, especially during economic crises.

Author

schotu1920

Language

EN