• Introduction
• Some evidence
— The 'New Economy' paradigm and Stock Prices
— Households Financial Investment and Expenditure Behaviour
— The challenges of monetary policy
• A Simple Aggregate Model
— Aggregate Demand and Wealth Effects of Stock Markets
— Aggregate Supply and Technological Shocks
— Stock Market Dynamics, Expected Dividends, Risk Premium and Bubbles
— Equilibrium Condition
— The Informational Structure
— The Optimal Monetary Policy
• The Results
— Solving the model
— Simulation and Interpretation
• Concluding Remarks
• Appendix
• References