A new version of this entry is available:

Loading...
Thumbnail Image
ResearchPaper
2010

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

Abstract (English)

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.

File is subject to an embargo until

This is a correction to:

A correction to this entry is available:

This is a new version of:

Notes

Publication license

Publication series

Hohenheimer Diskussionsbeiträge; 323

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Standardized keywords (GND)

BibTeX

@techreport{Spahn2010, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5377}, author = {Spahn, Peter}, title = {Asset prices, inflation and monetary control : re-inventing money as a policy tool}, year = {2010}, school = {Universität Hohenheim}, series = {Hohenheimer Diskussionsbeiträge}, }