COMMENT In recent months the debate about monetary policy and asset prices has intensified again. This sh
ould be no surprise given the deep financial problems affecting in particular the US. However, the issue is certainly not new. In the world of central banking hardly anything has been discussed more during the past 10 years. The problems we are confronted with are a consequence not of lack of awareness but of the fundamentally difficult issues involved when trying to integrate asset prices into frameworks for monetary policy.
