2 Within that framework, financial market conditions, such as developments in asset prices or in the quantity of money and credit, do not affect  1  2  I would like to thank G. Carboni, F. de Fiore, O. Tristani and L. Cappiello for their contributions and R. Motto and M. Rostagno for their comments. I remain solely responsible for the opinions expressed.
See, for instance, C.E. Walsh (2009), “Using Monetary Policy to Stabilize Economic Activity”, paper presented at the 2009 Jackson Hole Conference. In my remarks I will focus on the elements of the “consensus view” that are directly relevant to the relationship between monetary policy and asset prices. BIS Review 126/2009  1  macroeconomic outcomes, or the transmission of monetary policy.