Asset Prices as a Guide to Monetary Policy? Some central bankers have looked at asset prices, such as prices of stocks, to guide monetary policy. The idea is that if stock prices begin to rise, it...

Asset Prices as a Guide to Monetary Policy? Some central bankers have looked at asset prices, such as prices of stocks, to guide monetary policy. The idea is that if stock prices begin to rise, it might signal future inflation or an overheated economy. Are there any dangers to using the stock market as a guide to monetary policy?