Christiano, Lawrence J.; Ilut, Cosmin; Motto, Roberto - 2008
conventional
wisdom is de ned by the work of Bernanke and Gertler (2000), who argue that
an in ation-targeting monetary authority … automatically stabilizes the stock market.
The reason for this is that in the Bernanke-Gertler environment, in ation tends to
rise …
Bernanke, Gertler and Gilchrist (1999) into the simple monetary model. The result-
ing model is interesting for two reasons …