Macroeconomic implications for Hong Kong SAR of accommodative U.S. monetary policy : Papa N'Diaye.
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| Author / Creator: | N'Diaye, Papa M'B. P. (Papa M'Bagnick PateĢ) |
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| Imprint: | [Washington, D.C.] : International Monetary Fund, 2009. |
| Description: | 1 online resource (30 p.). |
| Language: | English |
| Series: | IMF working paper ; WP/09/256 IMF working paper ; WP/09/256. |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/13518562 |
| Summary: | This paper discusses the potential macroeconomic implications for Hong Kong SAR of accommodative monetary policy in the United States. It shows, through model simulations, that a resumption of the credit channel in Hong Kong SAR has the potential to create inflation in both goods and asset markets. Expansionary financial conditions will likely have a greater impact in fueling asset price inflation, manifested in the model through a strong increase in equity prices. Higher asset prices could, in turn, through a financial accelerator mechanism, lead to further credit expansion and an upward cycle of asset prices and credit. This cycle, if unchecked, can potentially feed into volatility in consumption, output and employment and complicate macroeconomic management. The simulation results suggest there is a role for countercyclical prudential regulations to mitigate the amplitude of the cycle and lessen the financial and macroeconomic volatility associated with an unwinding of the credit-asset price cycle. |
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| Item Description: | Description based upon print version of record. |
| Physical Description: | 1 online resource (30 p.). |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 1462331548 9781462331543 9786612844508 6612844507 1452733910 9781452733913 1451874022 9781451874020 1282844504 9781282844506 |