Book contents
- The Changing Fortunes of Central Banking
- The Changing Fortunes of Central Banking
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Acknowledgement
- 1 Introduction and Overview
- Part I Monetary Economics and Policy
- 2 Money
- 3 Monetary Control in the UK
- 4 Pristine and Parsimonious Policy
- 5 Central Bank Talk about Future Monetary Policy
- 6 Bank Capital and Monetary Policy Transmission
- 7 When Are Central Banks More Likely to Target Asset Prices?
- Part II Financial Stability and Regulatory Policy
- Part III Foreign Exchanges and International Architecture
- Part IV The Millennium Challenges of Central Banks
- Index
- References
7 - When Are Central Banks More Likely to Target Asset Prices?
from Part I - Monetary Economics and Policy
Published online by Cambridge University Press: 29 March 2018
Book contents
- The Changing Fortunes of Central Banking
- The Changing Fortunes of Central Banking
- Copyright page
- Contents
- Figures
- Tables
- Contributors
- Acknowledgement
- 1 Introduction and Overview
- Part I Monetary Economics and Policy
- 2 Money
- 3 Monetary Control in the UK
- 4 Pristine and Parsimonious Policy
- 5 Central Bank Talk about Future Monetary Policy
- 6 Bank Capital and Monetary Policy Transmission
- 7 When Are Central Banks More Likely to Target Asset Prices?
- Part II Financial Stability and Regulatory Policy
- Part III Foreign Exchanges and International Architecture
- Part IV The Millennium Challenges of Central Banks
- Index
- References
Summary
This chapter investigates when central banks target asset prices in practice in their monetary policy operations. By focusing our empirical analysis on both developed and developing countries and uncovering the mechanisms of how the transmission channels work and interact with the balance sheets of banks, firms and households, we find that central banks are more likely to implement a monetary policy that targets asset prices during times of crisis. We also find that developing and banking-based economies intend to target asset prices more directly, even during non-crisis time.
- Type
- Chapter
- Information
- The Changing Fortunes of Central Banking , pp. 101 - 114Publisher: Cambridge University PressPrint publication year: 2018
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