Federal Reserve Bank of St. Louis: 'Optimal Asset Market Operations'
June 24, 2025
June 24, 2025
ST. LOUIS, Missouri, June 24 (TNSLrpt) -- A working paper on June 16, 2025 from the Federal Reserve Bank of St. Louis proposes a novel framework for governments to optimally respond to disturbances in asset markets. The study, titled "Optimal Asset Market Operations," introduces a policy rule that relies on observable asset returns and empirically measurable elasticities, moving beyond the traditional reliance on unobservable shocks and complex micro-foundations.
Authored . . .
Authored . . .