EconPapers    
Economics at your fingertips  
 

Asset Prices, Financial Stability and Monetary Policy

Franklin Allen and Kenneth Rogoff ()
Additional contact information
Franklin Allen: University of PA

Working Papers from University of Pennsylvania, Wharton School, Weiss Center

Abstract: The theoretical and empirical literatures on monetary policy and real estate prices are rapidly evolving. There is considerable debate about whether monetary policy should play a role in forestalling dangerous real estate bubbles that have the potential to trigger financial crises. This paper provides a selective survey of this literature. The focus is on research that incorporates financial frictions and asset price bubbles that have the potential to create the discontinuous collapses that have been witnessed periodically. The possible role of macro-prudential regulation in controlling real estate prices is also discussed. Our conclusion is that monetary policy and macro-prudential regulation both need to be used to guard against real estate bubbles.

Date: 2011-02
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://fic.wharton.upenn.edu/fic/papers/11/11-39.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://fic.wharton.upenn.edu/fic/papers/11/11-39.pdf [301 Moved Permanently]--> https://fic.wharton.upenn.edu/fic/papers/11/11-39.pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecl:upafin:11-39

Access Statistics for this paper

More papers in Working Papers from University of Pennsylvania, Wharton School, Weiss Center Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2019-05-13
Handle: RePEc:ecl:upafin:11-39