Cel "The proposed research project seeks to further our understanding on two important questions for the design of monetary policy:(a) What are the effects of monetary policy interventions on asset price bubbles?(b) How should monetary policy be conducted in the presence of asset price bubbles?The first part of the project will focus on the development of a theoretical framework that can be used to analyze rigorously the implications of alternative monetary policy rules in the presence of asset price bubbles, and to characterize the optimal monetary policy. In particular, I plan to use such a framework to assess the merits of a “leaning against the wind” strategy, which calls for a systematic rise in interest rates in response to the development of a bubble.The second part of the project will seek to produce evidence, both empirical and experimental, regarding the effects of monetary policy on asset price bubbles. The empirical evidence will seek to identify and estimate the sign and response of asset price bubbles to interest rate changes, exploiting the potential differences in the joint behavior of interest rates and asset prices during “bubbly” episodes, in comparison to “normal” times. In addition, I plan to conduct some lab experiments in order to shed some light on the link between monetary policy and bubbles. Participants will trade two assets, a one-period riskless asset and a long-lived stock, in an environment consistent with the existence of asset price bubbles in equilibrium. Monetary policy interventions will take the form of changes in the short-term interest rate, engineered by the experimenter. The experiments will allow us to evaluate some of the predictions of the theoretical models regarding the impact of monetary policy on the dynamics of bubbles, as well as the effectiveness of “leaning against the wind” policies." Dziedzina nauki social scienceseconomics and businesseconomicsmonetary and finances Program(-y) FP7-IDEAS-ERC - Specific programme: "Ideas" implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) Temat(-y) ERC-AG-SH1 - ERC Advanced Grant - Individuals, institutions and markets Zaproszenie do składania wniosków ERC-2013-ADG Zobacz inne projekty w ramach tego zaproszenia System finansowania ERC-AG - ERC Advanced Grant Instytucja przyjmująca Centre de Recerca en Economia Internacional (CREI) Wkład UE € 799 200,00 Adres RAMON TRIAS FARGAS 25/27 08005 Barcelona Hiszpania Zobacz na mapie Region Este Cataluña Barcelona Rodzaj działalności Research Organisations Kontakt administracyjny Anna Rios (Ms.) Kierownik naukowy Jordi Galí Garreta (Prof.) Linki Kontakt z organizacją Opens in new window Strona internetowa Opens in new window Koszt całkowity Brak danych Beneficjenci (1) Sortuj alfabetycznie Sortuj według wkładu UE Rozwiń wszystko Zwiń wszystko Centre de Recerca en Economia Internacional (CREI) Hiszpania Wkład UE € 799 200,00 Adres RAMON TRIAS FARGAS 25/27 08005 Barcelona Zobacz na mapie Region Este Cataluña Barcelona Rodzaj działalności Research Organisations Kontakt administracyjny Anna Rios (Ms.) Kierownik naukowy Jordi Galí Garreta (Prof.) Linki Kontakt z organizacją Opens in new window Strona internetowa Opens in new window Koszt całkowity Brak danych