Asset prices, inflation and monetary control: Re-inventing money as a policy tool

Arbeitspapier

Low inflation on goods markets provides no reliable precondition for asset-market stability; it might even promote the emergence of bubbles because interest rates and risk premia appear to be low. A further factor driving asset demand is easy availability of credit, which in turn roots in the banking system operating in a regime of endogenous central-bank money. A comparison of Bundesbank and ECB policies suggests that credit growth can be controlled more efficiently if rising interest rates are accompanied by some liquidity squeeze that supports the spillover of a monetary restriction to capital markets. The announcement effect of a central bank Charter including the goal of financial-market stability helps to deter private agents from excessive asset trading.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ROME Discussion Paper Series ; No. 10-11

Klassifikation und Themen

• Klassifikation: Wirtschaft
• Thema: Open market policy ; asset price bubble ; euro money market ; ECB strategy

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Spahn, Peter
• Ereignis: Veröffentlichung
• (wer): Research On Money in the Economy (ROME)
• (wo): s.l.
• (wann): 2010

Weitere Informationen

• Handle: http://hdl.handle.net/10419/88235
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ