Template-type: ReDIF-Paper 1.0
Author-Name: Katrin Assenmacher
Author-Name-First: Katrin
Author-Name-Last: Assenmacher
Author-Person: pwe101
Author-Name: Stefan Gerlach
Author-Name-First: Stefan
Author-Name-Last: Gerlach
Author-Person: pge41
Title: Financial Structure and the Impact of Monetary Policy on Asset Prices
Abstract: 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 only 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.
Length: 44 pages
Creation-Date: 2008
Contact-Email: forschung@snb.ch
File-URL: https://www.snb.ch/en/publications/research/working-papers/2008/working_paper_2008_16
File-Format: text/html
Number: 2008-16
Classification-JEL: C23, E52
Keywords: Asset prices, monetary policy, panel VAR
Handle: RePEc:snb:snbwpa:2008-16