Measuring Monetary Conditions in US Asset Markets - A Market Specific Approach
نویسندگان
چکیده
منابع مشابه
Measuring Monetary Conditions in US Asset Markets - A Market Specific Approach
We analyze monetary conditions in US asset markets — corporate equity, real estate, Treasury bond and corporate & foreign bond — from a market specific perspective, proposing the concept of market leverage. Market leverage measures the average leverage of all asset holders in a particular asset market. The concept builds on an accountingbased network that links balance sheet leverages of asset ...
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Monetary policy has pursued the concept of inflation targeting. This has been implemented in many countries. Here interest rates are supposed to respond to an inflation gap and output gap. Despite long term continuing growth of the world financial assets, recently, monetary policy, in particular in the U.S. after the subprime credit crisis, was challenged by severe disruptions and a meltdown of...
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Bernanke and Gertler offer an excellent paper on guidelines for monetary policy. Much is to be learned, and when they get close to the key issue: Should the Fed crash asset market bubbles? Their firm nomodel and simulation-basedoffers great comfort to received wisdom. I have learned a lot from the paper and their broader research effort (see Clarida, Gali, and Gertler (1999) and the refer...
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Almost all real assets trade in decentralized markets, where trading frictions could inhibit the efficiency of asset allocations and depress asset prices. In this paper, I investigate how trading frictions vary as asset markets get thicker, and what implications market thickness has for asset allocations and prices. Intuitively, it is easier to sell assets that have a thicker market. As a resul...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2010
ISSN: 1556-5068
DOI: 10.2139/ssrn.1718381