2008, English, Article, Report edition: Monetary policy, market excesses and financial turmoil Rudiger Ahrend; Boris Cournede; Robert Price

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/193071935
Physical Description
  • Report
Published
  • OECD Economics Department, 2008-03-25 00:00:00
Language
  • English

Edition details

Title
  • Monetary policy, market excesses and financial turmoil
Author
  • Rudiger Ahrend
  • Boris Cournede
  • Robert Price
Published
  • OECD Economics Department, 2008-03-25 00:00:00
Physical Description
  • Report
Date or Place
  • Australia
Summary
  • This paper addresses the question of whether and how monetary policy ease may lead to excesses in financial and real asset markets and ultimately result in financial dislocation. It presents evidence suggesting that periods when short-term interest rates have been persistently and significantly below what Taylor rules would prescribe are correlated with increases in asset prices, especially as regards housing, though no systematic effects are identified on equity markets. Significant asset price increases, however, can also occur when interest rates are in line with Taylor rules, associated with periods of financial deregulation and/​or innovation. The paper argues that accommodating monetary policy over the period 2002–05, in combination with rapid financial market innovation, would seem in retrospect to have been among the factors behind the run-up in asset prices and consequent financial imbalances – the (partial) unwinding of which helped trigger the 2007 financial market turmoil. Moreover, the paper points out that in certain situations policy rates may be a rather blunt tool for dealing with both the build-up and aftermath of financial imbalances, raising the question whether “macro-prudential” regulation could be useful.
Language
  • English
Identifier
  • oai:apo.org.au:1967

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • VIC (1)
None of your libraries hold this item.

This single location in All:

Library Access Call number(s) Formats held Language
Australian Policy Online. Open to the public Article; Report English
Show 0 more libraries...
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

This single location in Victoria:

Library Access Call number(s) Formats held Language
Australian Policy Online. Open to the public Article; Report English
Show 0 more libraries...
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment