Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277178 
Year of Publication: 
2010
Citation: 
[Journal:] Intervention. European Journal of Economics and Economic Policies [ISSN:] 2195-3376 [Volume:] 07 [Issue:] 1 [Year:] 2010 [Pages:] 91-107
Publisher: 
Metropolis-Verlag, Marburg
Abstract: 
Central banks have generally opposed targeting asset and credit market excess. This paper argues against that position. Bubbles can impose significant harm through the debt footprint effects they leave behind, and through distortions resulting from using interest rates to mitigate their aggregate demand impacts. Conventional interest rate policy is not well suited to managing bubbles, and the paper argues for adoption of a new system of asset based reserve requirements (ABRR). Not only can ABRR target asset market excess, they also strengthen counter-cyclical monetary policy.
Subjects: 
asset price bubbles
asset based reserve requirements
JEL: 
E52
E58
E60
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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