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3 edition of Asset prices and monetary policy found in the catalog.

Asset prices and monetary policy

Maria Socorro Gochoco-Bautista

Asset prices and monetary policy

booms and fat tails in East Asia

by Maria Socorro Gochoco-Bautista

  • 340 Want to read
  • 37 Currently reading

Published by Bank for International Settlements in Basel, Switzerland .
Written in English


About the Edition

Do housing and equity booms significantly raise the probability of extremely bad outcomes at the margin? This study addresses this question for a group of 8 East Asian countries. The main findings are the following: (i) Asset price booms in housing and equity markets, either separately or jointly but especially in housing, significantly raise the probability at the margin that (a) the real output gap will be in the left tail of its distribution, in which output is significantly below trend, and (b) the price-level gap will be in the right tail of its distribution, in which the price level is significantly above trend. At the margin, the risk of the occurrence of these particular tail events due to asset price booms is largely asymmetric and does not apply to the tails of good outcomes; and (ii) Expected real output and price level outcomes that are either obtained without conditioning on asset price booms or are obtained conditional on asset price booms using the normal approximation underestimate the risk of tail events and lead to less pessimistic but misleading inferences. One implication for monetary policy is that an approach that is ex-ante more compatible with risk management may be appropriate.

Edition Notes

Statementby Maria Socorro Gochoco-Bautista.
SeriesBIS working papers -- no. 243
ContributionsBank for International Settlements. Monetary and Economic Dept.
Classifications
LC ClassificationsHG3879
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL22649182M
LC Control Number2008613027

Asset Prices, Macroprudential Regulation, and Monetary Policy Otaviano Canuto and Matheus Cavallari Until the onset of the global financial crisis, economists were close to a consensus on a set of blueprints for monetary and exchange rate regimes. An increasing number of central banks, both in advanced and emerging markets, had adopted. More about this item Book Chapters The following chapters of this book are listed in IDEAS. John Y. Campbell, "Introduction to "Asset Prices and Monetary Policy"," NBER Chapters, in: Asset Prices and Monetary Policy, pages , National Bureau of Economic Research, Inc. Stephen G. Cecchetti, "Measuring the Macroeconomic Risks Posed by Asset Price Booms," NBER Chapters, in: Asset.

The literature on the linkages between monetary policy and asset markets is vast. Here, we focus on two issues—the role of asset prices in the transmis-sion of monetary policy to the economy as a whole and the appropriate response of monetary policy to asset price booms. The first concerns the extent to which monetary policy might cause an. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic system.

  This Economic Letter summarizes the papers presented at the conference “Asset Prices, Exchange Rates, and Monetary Policy” held at Stanford University on March , , under the joint sponsorship of the Federal Reserve Bank of San Francisco and the Stanford Institute for Economic Policy Research.. During the past decade, asset markets have played .   Accordingly, in some situations, a monetary response to credit and asset markets may be appropriate to preserve both financial and monetary stability. This paper was presented at the conference on " Changes in risk through time: measurement and policy responses " organised by the BIS on 6 March and, as such, is appearing in the BIS Working.


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Asset prices and monetary policy by Maria Socorro Gochoco-Bautista Download PDF EPUB FB2

How Monetary Policy Affects Your Investments. In Asset Prices and Monetary Policy, leading scholars and practitioners probe the interaction of central banks, asset markets, and the general economy to forge a new understanding of the challenges facing policy makers as they manage an increasingly complex economic : John Y.

Campbell. Asset Prices and Monetary Policy: Four Views Paperback – November 1, by Mark Gertler (Author), Marvin Goodfriend (Author), Otmar Issing (Author), & See all 2 formats and editions Hide other formats and editions. Price New from Used from Paperback "Please retry" $ Cited by: 1. The Effect of Monetary Policy on Real Commodity Prices: Jeffrey A.

Frankel (p. - ) (bibliographic info) (Working Paper version) 8. Noisy Macroeconomic Announcements, Monetary Policy, and Asset Prices: Roberto Rigobon, Brian Sack (p. - ) (bibliographic info) (Working Paper version) by: E-book $ to $ About E-books ISBN: Published November Economic growth, low inflation, and financial stability are among the most important goals of policy makers, and central banks such as the Federal Reserve are key.

Monetary policy, asset prices and the wealth channel [Jonathan Horlacher] on *FREE* shipping on qualifying offers. Bachelor Thesis from the year in the subject Economics - Case Scenarios, grade: von 6, University of St.

Gallen. The views were expressed in a concluding panel discussion of a conference on Asset Prices and Monetary Policy organized by CEPR and the Bank for International Settlements.

Book Details 27. The Effect of Monetary Policy on Real Commodity Prices: Jeffrey A. Frankel (p. - ) (bibliographic info) (Working Paper version) 8. Noisy Macroeconomic Announcements, Monetary Policy, and Asset Prices: Roberto Rigobon, Brian Sack (p.

- ) (bibliographic info) (download) (Working Paper version). between asset prices and monetary policy from this point of view. Several chapters in the volume ask what monetary authorities can learn John Y. Campbell is Harvard College Professor and Morton L.

and Carole S. Olshan Pro-fessor of Economics at Harvard University, and a research associate of the National Bureau of Economic Research. The relationship between asset price inflation and commodity price inflation, and more generally the significance of asset prices for monetary policy formulation, has been the.

Monetary policy can only control the development of goods prices over the medium to long term. But, in times of large movements of assets prices the debate always starts on whether this concentration of monetary policy on consumer prices alone is appropriate or not.

Asset price developments have an influence on spending decisions by companies and. Finally, asset prices can affect the value of collateral and thus the provision of credit, thereby influencing aggregate spending.

In cases of sharply falling market valuations, these adverse credit-channel effects may even be exacerbated by the deteriorating health of banks and other financial institutions. Monetary Policy and Asset Prices Brett Fawley,Research Analyst Luciana Juvenal,Economist The housing market crisis is the latest reminder that asset prices can and do run wild at rates capable of negative effects on real economic activity.

Not surprisingly, this has reinvigorated debate over whether central banks should respond to asset price File Size: 87KB. Asset Price Learning and Optimal Monetary Policy Caines, Colin and Fabian Winkler International Finance Discussion Papers Board of Governors of the Federal Reserve System Number August Please cite paper as: Caines, Colin and Fabian Winkler ().

Asset Price Learning and Optimal Monetary Policy. International Finance Discussion. Assets are valued for what they yield, which includes direct rate of returns, as is standard in finance, and potentially some liq- uidity services, as is standard in monetary theory.

2 This paper provides a tractable model where money and other assets coexist, and where monetary policy affects equilibrium prices and rates of return on these Cited by:   Asset prices are currently at very elevated levels.

In part this is a consequence of long-running fundamental trends in interest rates. Yet there is substantial empirical evidence that monetary policy encourages risk-taking in the financial system, and the risks of an asset price correction are increasing.

conduct of monetary policy, with a focus on the desirability and feasibility of conducting monetary policy in a manner that “leans against the wind” of asset price bubbles.

Boom/bust cycles in asset prices are potentially very costly in terms of output and price stability. Asset Prices and Central Bank Policy Geneva Reports on the World Economy 2 By Steven G.

Cecchetti, Hans Genberg, John Lipsky, and Sushil Wadhwani August 1, how monetary policy should react in a more direct way to asset price developments. 1 The authors thank Claudio Borio, Andrew Filardo, Haibin Zhu and the participants in the workshop for comments and suggestions, as well as Janet Plancherel for editorial by: Monetary Policy and Asset Prices Article in Journal of Monetary Economics 49(1) January with Reads How we measure 'reads'.

of inflation, an increase in asset price inflation could prompt tighter monetary policy even if conventionally measured inflation were low and stable. In this case, the higher asset price inflation would signal expectations of higher future inflation.

By tightening monetary policy, the central bank can rein in those expecta-tions. In any case, further research on the links between monetary policy and asset prices is needed. Kevin J. Lansing Senior Economist References [URLs accessed October ] Borio, C., and P.

Lowe. “Asset Prices, Financial and Monetary Stability: Exploring the Nexus.” Bank for International Settlements Working Paper "Asset Prices and Monetary Policy," NBER Books, National Bureau of Economic Research, Inc, number camp, April. Simon Gilchrist & Masashi Saito, "Expectations, Asset Prices, and Monetary Policy: The Role of Learning," NBER Chapters, in: Asset Prices and Monetary Policy, pagesNational Bureau of Economic Research, Inc.