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Politique monétaire et prix des actifs: le cas des Etats-Unis

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  • Quentin Wibaut

    (National Bank of Belgium, Research Department)

Abstract

This working paper gives an overview of the current debate on monetary policy reactions to asset prices, focusing on the developments on equity markets in the United States. It first describes the main causes and consequences of these developments and then surveys the pros and cons of a monetary policy reaction. The standard approach relying on the Gordon-Shapiro equation fails to justify the current high price levels on US stock markets. Several limits to Gordon-Shapiro's perfect competition model are proposed in order to explain the gap between observed and "justified" data. Equity prices affect investment and consumption through several channels. Although monetary policy should not ignore asset price fluctuations, it is fairly generally thought that it should take them into account only in so far as they affect inflation.

Suggested Citation

  • Quentin Wibaut, 2000. "Politique monétaire et prix des actifs: le cas des Etats-Unis," Working Paper Document 11, National Bank of Belgium.
    • Handle: RePEc:nbb:docwpp:200008-11
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    File URL: https://www.nbb.be/doc/ts/publications/wp/wp11fr.pdf
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    Cited by:

    1. A. Bruggeman & M. Hradisky & V. Périlleux, 2005. "Share prices, house prices and monetary policy," Economic Review, National Bank of Belgium, issue iii, pages 65-78, September.
    2. Patrick Bisciari & Alain Durré & Alain Nyssens, 2003. "Stock market valuation in the United States," Working Paper Document 41, National Bank of Belgium.
    3. Geert Langenus, 2006. "Fiscal sustainability indicators and policy design in the face of ageing," Working Paper Research 102, National Bank of Belgium.
    4. Luc Aucremann & David Cornille, 2001. "Attractive prices and euro-rounding effects on inflation," Working Paper Document 17, National Bank of Belgium.

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