Research Discussion Paper – RDP 2003-11 How Should Monetary Policy Respond to Asset-Price Bubbles?


We are grateful to Glenn Stevens for a conversation that initiated this work, and to Guy Debelle, Malcolm Edey, Philip Lowe, Andrew Rose and Dave Stockton for helpful suggestions. The views expressed in this paper are those of the authors and should not be attributed to their employers.


Macroeconomic Group, Australian Treasury [*]

Economic Group, Reserve Bank of Australia [**]