Financial structure and the impact of monetary policy on asset prices
- We study the responses of residential property and equity prices, inflation and economic activity to monetary policy shocks in 17 countries, using data spanning 1986-2006, using single-country VARs and panel VARs in which we distinguish between groups of countries depending on their financial systems. The effect of monetary policy on property prices is about three times as large as its impact on GDP. Using monetary policy to guard against financial instability by offsetting asset-price movements thus has sizable effects on economic activity. While the financial structure influences the impact of policy on asset prices, its importance appears limited.
| Author: | Katrin Assenmacher-WescheORCiDGND, Stefan GerlachGND |
|---|---|
| URN: | urn:nbn:de:hebis:30-57680 |
| Parent Title (German): | Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 2008,30 |
| Series (Serial Number): | CFS working paper series (2008, 30) |
| Document Type: | Working Paper |
| Language: | English |
| Year of Completion: | 2008 |
| Year of first Publication: | 2008 |
| Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
| Release Date: | 2008/09/24 |
| GND Keyword: | Geldpolitik; Aktienkurs; Wohneigentum; Grundschuld; Inflation |
| HeBIS-PPN: | 205706150 |
| Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
| Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
| JEL-Classification: | C Mathematical and Quantitative Methods / C2 Single Equation Models; Single Variables / C23 Models with Panel Data |
| Licence (German): |  Deutsches Urheberrecht |
