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Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study

Author

Listed:
  • Paul Bloxham

    (Reserve Bank of Australia)

  • Christopher Kent

    (Reserve Bank of Australia)

  • Michael Robson

    (Reserve Bank of Australia)

Abstract

The long-running debate about the role of monetary policy in responding to rising asset prices has received renewed attention in the wake of the global financial crisis.This paper contributes to this debate by describing the Australian experience of a cycle in house prices and credit from 2002 to 2004, and discussing the role played by various policies during this episode. In particular, it focuses on the efforts by the Reserve Bank of Australia to draw attention to the risks associated with large, ongoing increases in housing prices and household borrowing.

Suggested Citation

  • Paul Bloxham & Christopher Kent & Michael Robson, 2010. "Asset Prices, Credit Growth, Monetary and Other Policies: An Australian Case Study," RBA Research Discussion Papers rdp2010-06, Reserve Bank of Australia.
    • Handle: RePEc:rba:rbardp:rdp2010-06
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    References listed on IDEAS

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    More about this item

    Keywords

    asset prices; credit growth; lending standards; monetary policy; regulatory policy;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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