Asset-Based Reserve Requirements: A New Monetary Policy Instrument for Targeting Diverging Real Estate Prices in the Euro Area

Artikel

Can monetary policy prevent real estate bubbles from harming economic welfare? The European Central Bank (ECB) has to conduct monetary policy for the Euro area as a whole, but her policy affects countries with rapidly rising house prices (e.g. Spain) in a markedly different way than those with stagnating house prices (like Germany). For opposing divergent real estate price developments within the European Monetary Union (EMU), interest rate policy is not the appropriate instrument; whereas "fine tuning" may be possible with the help of asset-based reserve requirements. All financial institutions would be forced to deposit them at the ECB (as a percentage of asset holdings). Reserve rates are free to vary between countries. Therefore, rates should be highest in those countries where appropriate indicators signal a house price bubble.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Journal: Intervention. Zeitschrift fuer Ökonomie / Journal of Economics ; ISSN: 2195-3376 ; Volume: 04 ; Year: 2007 ; Issue: 2 ; Pages: 331-351

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Financial Markets and the Macroeconomy ; Monetary Policy ; General Financial Markets: Government Policy and Regulation
• Thema: monetary policy ; real estate prices ; Tobin's Q ; minimum reserve policy ; financial stability

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Holz, Michael
• Ereignis: Veröffentlichung
• (wer): Metropolis-Verlag
• (wo): Marburg
• (wann): 2007

Weitere Informationen

• DOI: doi:10.4337/ejeep.2007.02.10
• Handle: http://hdl.handle.net/10419/277111
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ