dc.contributor.author | Akram, Q. Farooq | |
dc.contributor.author | Bårdsen, Gunnar | |
dc.contributor.author | Eitrheim, Øyvind | |
dc.date.accessioned | 2018-05-16T12:52:38Z | |
dc.date.available | 2018-05-16T12:52:38Z | |
dc.date.issued | 2005 | |
dc.identifier.isbn | 82-7553-316-3 | |
dc.identifier.isbn | 82-7553-317-1 | |
dc.identifier.issn | 0801-2504 | |
dc.identifier.issn | 1502-8143 | |
dc.identifier.uri | http://hdl.handle.net/11250/2498436 | |
dc.description.abstract | We investigate whether there is a case for asset prices in interest rates rules within a
small econometric model of the Norwegian economy, modeling the interdependence of the real
economy, credit and three classes of assets prices: housing prices, equity prices and the nominal
exchange rate. We compare the performance of simple and efficient interest rate rules that
allow for response to movements in asset prices to the performance of more standard monetary
policy rules. We find that including housing prices and equity prices in the policy rules can
improve macroeconomic performance in terms of both nominal and real economic stability.
In contrast, a response to nominal exchange rate fluctuations can induce excess volatility in
general and prove detrimental to macroeconomic stability. | nb_NO |
dc.language.iso | eng | nb_NO |
dc.publisher | Norges Bank | nb_NO |
dc.relation.ispartofseries | Working Papers;9/2005 | |
dc.rights | Attribution-NonCommercial-NoDerivatives 4.0 Internasjonal | * |
dc.rights.uri | http://creativecommons.org/licenses/by-nc-nd/4.0/deed.no | * |
dc.subject | JEL: C51 | nb_NO |
dc.subject | JEL: C52 | nb_NO |
dc.subject | JEL: C53 | nb_NO |
dc.subject | JEL: E47 | nb_NO |
dc.subject | JEL: E52 | nb_NO |
dc.subject | monetary policy | nb_NO |
dc.subject | asset prices | nb_NO |
dc.subject | simple interest rate rules | nb_NO |
dc.subject | econometric model | nb_NO |
dc.title | Monetary Policy and Asset Prices: To Respond or Not? | nb_NO |
dc.type | Working paper | nb_NO |
dc.description.version | publishedVersion | nb_NO |
dc.subject.nsi | VDP::Samfunnsvitenskap: 200::Økonomi: 210::Samfunnsøkonomi: 212 | nb_NO |
dc.source.pagenumber | 28 | nb_NO |