Working Papers in full text
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
All
Other research-related activities and publications of the IMF can be found at IMF Research
|
Free Email Notification
Receive emails when we post new
items of interest to you.
Subscribe or
Modify your profile
|
|
|
|
Macroeconomic Patterns and Monetary Policy in the Run-up to Asset Price Busts
|
Author/Editor: |
Kannan, Prakash | Rabanal, Pau | Scott, Alasdair |
| Authorized for Distribution: |
November 1, 2009 |
|
Electronic Access: |
Free Full Text (PDF file size is 1,326KB)
Use the free Adobe Acrobat Reader to view this PDF file.
|
|
|
|
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
|
|
Summary: We find that inflation, output and the stance of monetary policy do not typically display unusual behavior ahead of asset price busts. By contrast, credit, shares of investment in GDP, current account deficits, and asset prices typically rise, providing useful, if not perfect, leading indicators of asset price busts. These patterns could also be observed in the build-up to the current crisis. Monetary policy was not the main, systematic cause of the current crisis. But, with inflation typically under control, central banks effectively accommodated these growing imbalances, raising the risk of damaging busts.
|
|
|
|
Order a print copy
|
|
Series: |
Working Paper No. 09/252 |
|
Subject(s): |
Asset prices | Credit expansion | Housing prices | Monetary policy | Price increases | Stock prices |
|
Author's keyword(s): |
Asset Prices; Credit; Monetary Policy
|
|
|
|
|
| |
Published: |
|
November 1, 2009 |
|
|
|
|
| |
|
|
|
|
Format: |
|
Paper |
| |
Stock No: |
|
WPIEA2009252 |
|
Pages: |
|
39 |
| |
Price: |
|
US$18.00 (Academic Rate: US$18.00 )
|
|
|
|
|
|
|
