This paper highlights exchange-traded funds (ETF) purchases conducted by the Bank of Japan under Quantitative and …

This paper reexamines the main arguments of whether or not monetary policy should respond to asset bubbles. The … encourages “leaning against bubbles” and giving due consideration to alternative tools other than interest rate policy tools …

This paper studies whether and how the central bank should prick asset price bubbles, if the effect of interest rate … policy on bubbles can significantly vary across periods. For this purpose, I first construct a financial accelerator model … with an agent-based financial market that can endogenously generate bubbles and account for their impact on the real sector …

asset pricing in line with rational bubbles. We show that the response of the excessive stock price component to a monetary …

This paper investigates the effect of monetary policy on stock market bubbles and trading behavior in experimental … observe a strong impact of our interest rate policy on liquidity in the stock market but only a small impact on bubbles …. However, we find that announcing the possibility of reserve requirements significantly reduces bubbles even when such …

on prices, risk premia, asset price bubbles, and financial stability. Bubble risk premia arise from an interaction … adjusted risk and bubble risk premia increase. We propose a new framework for monetary policy with respect to bubbles. What …/pessimists). Accommodative policy can lead to a larger fraction of trading constrained agents that disagree, larger bubbles, and increased …