Asset Prices and Monetary Policy

ECB Workshop on 11/12 December 2003

On 11 and 12 December 2003 the Directorate Monetary Policy of the Directorate General Economics in co-operation with the Directorate General Research of the European Central Bank (ECB) held a workshop entitled "Asset Prices and Monetary Policy".

Papers which were presented and discussed at the workshop are published below.

Papers

• Introductory Statement at the ECB Workshop by Prof. Issing (Member of the Executive Board - ECB),  pdf 34 kB, en.
• Issues raised at the ECB Workshop on "Asset prices and monetary policy", by C. Detken, K. Masuch and F. Smets (European Central Bank),  pdf 43 kB, en.
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The consequences of major asset price changes and financial imbalances

Introductory lecture

• "Deflation", by C. Goodhart (London School of Economics) and B. Hofmann (Deutsche Bundesbank),  pdf 578 kB, en.
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Stylised facts of asset price booms and busts

• "Asset price booms and monetary policy", by C. Detken and F. Smets (European Central Bank),  pdf 433 kB, en.
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The information content of asset prices and the transmission mechanism

• "Securing sustainable price stability: Should credit come back from the wilderness", by C. Borio and P. Lowe (Bank for International Settlements),  pdf 383 kB, en.
• "Does financial structure matter for the information content of financial indicators", by R. Djoudad, J. Selody and C. Wilkins (Bank of Canada),  pdf 169 kB, en.
• "Interest rate pass-through in the Polish banking sector and bank-specific financial disturbances", by T. Chmielewski (Narodowy Bank Polski),  pdf 370 kB, en.
• "Exploring the potential conflict between monetary stability and financial stability in a small open economy", by F. Akram, G. Bårdsen and Ø. Eitrheim (Norges Bank),  pdf 535 kB, en.
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The design of optimal monetary policy

Introductory lecture

• "What the FOMC says and does when the stock market booms", by S. Cecchetti (Brandeis University), download paper from the Reserve Bank of Australia website (www.rba.gov.au):  pdf 204 kB, en.
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Bubbles, financial frictions and monetary policy reactions

• "Monetary policy, asset prices and misspecification. The robust approach to bubbles with model uncertainty", by R. Tetlow (Federal Reserve Board),  pdf 243 kB, en.
• "The Great Depression and the Friedman-Schwartz Hypothesis", by L. Christiano, R. Motto and M. Rostagno (European Central Bank),  pdf 1 MB, en.
• "How should monetary policy respond to asset-price bubbles?", by D. Gruen, M. Plumb and A. Stone (Reserve Bank of Australia),  pdf 215 kB, en.
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Uncertainty and monetary policy

• "Optimal policy and abrupt shifts in economic behaviour", by F. Zampolli (Bank of England),  pdf 387 kB, en.
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