A central bank decides to issue a statement declaring that it will not try to eliminate asset-price

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A central bank decides to issue a statement declaring that it will not try to eliminate asset-price bubbles. Can you think of a negative consequence of this statement for the central bank’s ability to conduct monetary policy?

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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Question Posted: Oct 16, 2023 09:34 AM

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A central bank decides to issue a statement declaring that it will not try to eliminate asset-price

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Yes there could be several negative consequences for a central bank if it declares that it will not try to eliminate assetprice bubbles Loss of Credib...View the full answer

Financial Markets And Institutions

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