Research Catalog

Title

Asset Prices and Monetary Policy [electronic resource] / Mike Kennedy ... [et al]

Publication

Paris : OECD Publishing, 1998.

Details

Additional Authors

• Kennedy, Mike.
• Palerm, Ángel.
• Pigott, Charles.
• Terribile, Flavia.

Description

34 p.; 21 x 29.7cm.

Summary

In this paper, the authors analyse the role of asset market prices in the formation of monetary policy with particular reference to equity markets, a concern for policy makers in the late 1990s. While asset prices have potentially valuable supplementary information for monetary policy makers, they are hard to interpret because of their inherent volatility. Dilemmas arise when asset price movements are large and there are no signs of inflation pressures. Waiting until speculative pressures run their course risks both contagion to other sectors and assets and potentially damaging fallout from a correction. Tightening monetary policy in these circumstances (perhaps to avoid potential fallout on other sectors) would be difficult to justify to the public. In the current situation of low inflation (late 1997), various valuation measures suggest that equity markets are over-valued in the United States, Canada and Italy. Other countries are either at more intermediate positions ...

Series Statement

OECD Economics Department Working Papers, 1815-1973 ; no.188

Uniform Title

OECD Economics Department Working Papers, no.188.

Subject

Economics

LCCN

10.1787/152217364457

OCLC

oecd-lib-000894

Title

Asset Prices and Monetary Policy [electronic resource] / Mike Kennedy ... [et al]

Imprint

Paris : OECD Publishing, 1998.

Series

OECD Economics Department Working Papers, 1815-1973 ; no.188

OECD Economics Department Working Papers, 1815-1973 ; no.188.

Connect to:

http://dx.doi.org/10.1787/152217364457

Indexed Term

Economics

Added Author

Kennedy, Mike.

Palerm, Ángel.

Pigott, Charles.

Terribile, Flavia.

Other Standard Identifier

10.1787/152217364457 doi