Ashford ECO 406: Week 4 – DQ 2 – Stabilizing Asset Prices

Ashford ECO 406: Week 4 – DQ 2 – Stabilizing Asset Prices

1st Posting Due by Day 3. Stabilizing Asset Prices. Economists have been grappling with a debate regarding the extent to which stabilizing asset prices should be a goal of monetary policy. The three goals of the Federal Reserve Board are to have economic growth, full employment, and price stability. In your opinion, should monetary policy be used to stabilize asset prices given the volatility of the market in the past couple of years? Respond to at least two of your classmates’ posting

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Stabilizing asset prices

            In my own opinion, monetary policy should be used to stabilize the economy. Fluctuations in the market normally occur because of the interest rates that keep on increasing and decreasing without any possible format. When the monetary policy is used, the economy will stabilize because it will be dictating the interest rates.

            Monetary policy is a financial accelerator. A policy…

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