Staff Memo

Credit, asset prices and monetary policy

Author: Leif Brubakk and Gisle Natvik
Series: Staff Memo
Number: 13/2010

Based on the established literature, we develop a structural model for the Norwegian economy that incorporates feed-backs from asset prices and credit to the real economy. We then use this framework for policy analysis, focusing on the role of asset prices and credit under optimal simple monetary policy rules.

Published 11 November 2010 14:10