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Based on the data from 1984:Q1 to 2009:Q2, I find that historical evidence of the policy reaction toward stock prices is weak except for the stock market bubble of the 1990s. A counterfactual exercise shows that the rapid growth in stock prices during that period would have been significantly higher if monetary policy had been independent of the stock market. However, unconditional macroeconomic volatility increases with the degree of policy responsiveness toward stock prices. Copyright \u00a9 2017 John Wiley &amp; Sons, Ltd.<\/jats:p>","DOI":"10.1002\/jae.2560","type":"journal-article","created":{"date-parts":[[2017,1,11]],"date-time":"2017-01-11T08:44:07Z","timestamp":1484124247000},"page":"965-982","source":"Crossref","is-referenced-by-count":12,"title":["Monetary Policy and Asset Prices: A Markov\u2010Switching DSGE Approach"],"prefix":"10.1002","volume":"32","author":[{"given":"Joonyoung","family":"Hur","sequence":"first","affiliation":[{"name":"Economic Research Institute Bank of Korea Seoul South Korea"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"311","published-online":{"date-parts":[[2017,1,11]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.red.2010.01.001"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1093\/biomet\/asm017"},{"key":"e_1_2_9_4_1","doi-asserted-by":"crossref","unstructured":"BernankeBS GertlerM.2000.Monetary policy and asset price volatility. 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