| Fear of depression - Asymmetric monetary policy with respect to asset markets (2009) | |||||||||||
Abstract | |||||||||||
| The paper suggests that during Greenspan’s incumbency the fear of depression caused the Federal Reserve to lower interest rates rapidly when asset price developments suggested a crisis potential. Whereas, when asset markets were growth-supporting, it did not raise interest rates. This asymmetry contributed to a downward-trend in interest rates which pushed US interest rates down to zero in the current crisis. | |||||||||||
Publication details | |||||||||||
| |||||||||||