price inflation. A theoretical framework of asset pricing based on the ideas of Keynes and Minsky is developed, within which … the working of the instruments is demonstrated and analyzed. It is shown that in theory both instruments are able to … reduce excessive asset price inflation by reducing the amount of credit money and investment flowing from financial …

We use a simple New Keynesian model, with firm specific capital, non-zero steady-state inflation, long-run risks and … rate by 150 basis points causes output and inflation volatility to rise around 10% above their steady-state standard … deviations from the policy rule and the results are re-enforced by the presence of non-zero trend inflation. …