## Asset Prices, Monetary Policy, and the Business Cycle

_IMF Policy Discussion Papers, March 1, 1994_

## Source details

**Canonical URL:** [Asset Prices, Monetary Policy, and the Business Cycle](https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/asset-prices-monetary-policy-and-the-business-cycle-1505)

## Other formats

- [Markdown version](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/asset-prices-monetary-policy-and-the-business-cycle-1505/index.md)
- [Structured JSON version](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/asset-prices-monetary-policy-and-the-business-cycle-1505/index.json)
- [Bundle manifest](/en/publications/imf-policy-discussion-papers/issues/2016/12/30/asset-prices-monetary-policy-and-the-business-cycle-1505/bundle-manifest.json)

## Bibliographic details
- Authors: Garry J. Schinasi
- Published: March 1, 1994
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451971927.003

---

### Overview and scope
- Title: Asset Prices, Monetary Policy, and the Business Cycle
- Author: Garry J. Schinasi
- Publication type: IMF Policy Discussion Papers (Paper on Policy Analysis and Assessment)
- Date of issuance: March 1, 1994
- Pages: 28
- Series: Policy Discussion Paper No. 1994/006
- Issue: 006
- Volume: 1994
- DOI: https://doi.org/10.5089/9781451971927.003
- Stock No: PPIEA0061994
- ISBN: 9781451971927
- ISSN: 1564-5193

### Key findings and analysis
- The business cycle in several industrial countries during the period 1989-1993 was different from previous post World War II business cycles in important ways.
- The paper describes the unique character of the 1989-1993 cycle and examines important underlying structural and macroeconomic factors that contributed to those differences.
- Many structural changes were partly responsible for the overshooting of asset prices and private debt levels.
- The paper emphasizes that the extreme overshooting of asset prices and private debt could not have occurred without overexpansionary monetary and fiscal policies.
- The paper examines why inflationary pressures were allowed to accumulate during this episode.

### Policy implications and recommendations
- The paper discusses a number of lessons for conducting economic policy in the 1990s, drawing on the analysis of structural factors, asset-price overshooting, and policy-induced inflationary pressures.
- As a Paper on Policy Analysis and Assessment, the author(s) welcome comments on the text and request that citations refer to a Paper on Policy Analysis and Assessment of the International Monetary Fund, mentioning the author(s) and the date of issuance.

### Subject classification and keywords
- Subject: Asset prices, Business cycles, Economic growth, Financial markets, Inflation, Price adjustments, Prices, Securities markets
- Keywords: asset, asset accumulation, asset market activity, Asset prices, asset-market information, bank assets, Business cycles, Global, Inflation, monetary policy, PDP, price, Price adjustments, price movement, real asset, Securities markets

*Source: IMF Policy Discussion Paper No. 1994/006, Garry J. Schinasi, March 1, 1994.*

---


_Source: https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/asset-prices-monetary-policy-and-the-business-cycle-1505_