Think tank europe

Should central banks target stock prices?

29/09/2008
Author : Centre for European Policy Studies (CEPS - Belgium)
Paul De Grauwe, September 2008
 
This paper, which draws on a longer, more analytical Working Document by the same author (No. 304/September 2008), explores the question of whether central banks should target stock prices so as to prevent bubbles and crashes from occurring. It analyses how ‘leaning against the wind’ strategies, which aim to reduce the volatility of stock prices, can help in reducing volatility of output and inflation. Its finds, however, that a critical element in the success in such a strategy is the degree of credibility of the inflation-targeting regime. In the absence of such credibility, policies aiming at stabilising stock prices do not stabilise output and inflation.

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7 COMMENT(S)
  • Re:Should central banks target stock prices? eyelash growth

article was great for stock information.

By mark roben on 12/1/2010 00:09
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  • Re:Should central banks target stock prices?

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By Refal Nedal on 12/25/2010 07:16
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  • Re:Should central banks target stock prices?

aking banking services to customers' homes, public sector lender Central Bank of India on Saturday launched a service through which a bank's representative will visit customers for carrying transactions and collecting cheques and drafts.
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The service, christened Door Step Banking , will entail a representative going to the customer's address for picking- up and delivering cash through an arrangement with a service provider, the bank said in a press release issued here.

By Cristian Codera on 2/9/2011 11:53
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  • Re:Should central banks target stock prices?

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By clark dorin on 3/1/2011 20:38
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This is a good reason to spend money. They have a report for this. You can see that in here.
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By clark dorin on 3/1/2011 20:42
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By century21 broker on 12/25/2011 02:27
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