Monetary and Non-Monetary Responses to Asset Price Bubbles

• Autorzy: Igor M. Tomic , John Angelidis
• Języki publikacji: EN

Abstrakty

EN

Last year I argued that not all bubbles are the same as some are more problematic than others, and therefore it is difficult but still important to try to identify them. The other question is what does one do if a bubble formation is suspected. Should the monetary policy rush in, ignore it, or orchestrate some type of soft landing. Furthermore, should all the policy activity be left to a central bank or does the regulatory and supervisory system has any responsibility? Would they be the first agents to reduce the bubble's effects so that the crude monetary tools may be left unused? This paper reviews the difficulties encounters with respect to bubble identification and explores the possibility of activity by regulators and central banks to prevent bubble formation that, if left unchecked, will disrupt output and inflation. When bubbles grow to a certain size, negative feedback loops begin to form that can easily lead to a deeper recession - like the one recently experienced. (fragment of text)

Słowa kluczowe

EN

Central banks; Economic bubble; Inflationary price movements

PL

Banki centralne; Bańka spekulacyjna; Inflacyjny ruch cen

• Czasopismo: Scientific Publications / University of Economics in Katowice
• Rocznik: 2014
• Tom: Global Business Towards New Paradigm in Time of Crisis
• Strony: 69--76

Twórcy

autor

Igor M. Tomic

• St. John's University, United States

autor

John Angelidis

• St. John's University, United States

Bibliografia

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