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Faia, E. and Monacelli, T. (2007) Optimal Interest Rate Rules, Asset Prices, and Credit Frictions. Journal of Economics Dynamics and Control, 31, 3228-3254.
http://dx.doi.org/10.1016/j.jedc.2006.11.006

has been cited by the following article:

• TITLE: Asset Prices, Nominal Rigidities, and Monetary Policy: Negative Monetary Policy Responses to Asset Price Fluctuations

  AUTHORS: Kengo Nutahara

  KEYWORDS: Asset Prices, Monetary Policy, Equilibrium Determinacy

  JOURNAL NAME: Theoretical Economics Letters, Vol.4 No.8, October 7, 2014

  ABSTRACT: Carlstrom and Fuerst [“Asset Prices, Nominal Rigidities, and Monetary Policy,” Review of Economic Dynamics, Vol. 10, 2007, pp. 256-275] find that a positive monetary policy response to share prices is a source of equilibrium indeterminacy. In this note, we investigate the negative response of a central bank to share prices. We find that a negative monetary policy response to share prices is also a source of equilibrium indeterminacy.