Asset bubble
Nishimura wants change in macro-prudential focus
BoJ deputy governor says financial regulation should work counter-cyclically against demographic expansion to avoid fuelling property bubbles
Bank Indonesia chief says economy strong despite signs of bubbles
Darmin Nasution says Indonesian growth rate ‘one of the highest in the world’, although signs of a property bubble may be emerging
Singapore moves to prevent property price bubble
MAS introduces restrictions on loan tenures and lowers loan-to-value ratios in a bid to stem risk of price bubble in property market
Central Bank of Chile paper tests evidence of asset price booms
Researcher finds evidence that capital flows drive asset price booms; identifies factors that mitigate this effect but says capital controls are not effective
ECB paper warns of capital control externalities
Working paper examines spillover from tax on capital inflows into Brazil; identifies significant direct impact amplified by signalling effects
SNB paper links low interest rates and housing bubbles
Swiss National Bank working paper finds strong relationship between low short-term rates and housing bubbles; argues house prices can be controlled by following ‘Taylor rule’
Robert Aliber says the US must get tough on China
The shift to floating-rate currencies has facilitated and exaggerated the development of asset bubbles around the world, Robert Aliber tells Robert Pringle
Robert Pringle’s Viewpoint: Central bank macro-prudential powers are no panacea
Central banks will take on substantial new macro-prudential supervisory powers in the years ahead. But this is a dangerous experiment, and a step in the wrong direction
Investors were ‘fooled by search’ in US housing, says Bank of Canada paper
Bank of Canada study says search frictions in the housing market contributed significantly to the housing bubble in the US over a decade
Macro-prudential policies address root of stability problems, says SNB’s Danthine
SNB governing board member Jean-Pierre Danthine says policies that lean against asset bubbles can create large shortfall in economic growth; prefers forward-looking macro-prudential tools
ECB’s Praet highlights challenges in identifying asset-price bubbles
European Central Bank executive board member Peter Praet says detection of house price booms in advance is extremely difficult
Asset shortages fuel price bubbles: IMF paper
Fund study says higher dependence on intangible capital and scarcity of high-yield assets creates asset-price bubbles
Chicago Fed paper explores determinants of asset-price bubbles
Chicago Federal Reserve study says theoretical models that observe relative price deviations from fundamentals are effective in predicting boom-bust cycles
Chile’s De Gregorio discusses how to tackle asset-price bubbles
Central Bank of Chile governor José De Gregorio says distortions in asset markets are often best addressed using foreign exchange interventions
BIS paper examines effects of negative asset price bubbles in Asia-Pacific
Bank for International Settlements study shows underpricing of assets in Asia-Pacific caused cross-border spillovers
Mortgage securitisation fuelled housing bubble: Bank of Spain paper
Bank of Spain study says increased mortgage securitisation in Spain had strong impact on new borrowers' access to credit during recent housing boom
Housing bubble fuelled by light-touch regulation: IMF paper
Fund study shows light-touch regulation of independent mortgage originators fuelled the US housing bubble
Israeli housing bubble in early stages: Bank of Israel paper
Bank of Israel study shows house price increases in Israel are not exceptionally high relative to past episodes
Ex-BIS GM on limitations of narrow banking
Bank for International Settlements former general manager Sir Andrew Crockett says narrow banking will not prevent excess build-up in credit
Japan’s 90s QE programme too small: Fed paper
Federal Reserve study says Japan’s 1990s quantitative easing programme was not large enough to sufficiently impact bank lending
BoJ’s Nishimura highlights demography link to asset bubbles
Bank of Japan deputy governor Kiyohiko Nishimura says asset market bubbles are correlated to demographic changes
France’s Noyer on failures of dealing with asset bubbles
Bank of France governor Christian Noyer admits to shortcomings in pre-crisis monetary policy framework towards asset-price bubbles
ECB’s Tumpel-Gugerell on cost of ex-post crisis measures
European Central Bank executive board member Gertrude Tumpel-Gugerell says large costs to clean up asset-price bubbles should lend support to more preemptive policies
Chicago Fed’s Evans warns against leaning on asset-price bubbles
Chicago Federal Reserve president Charles Evans says use of monetary policy tools to address systemic stability will burden Fed’s dual mandate