Normal view MARC view ISBD view

Purfield, Catriona.

India Asset Prices and the Macroeconomy / Catriona Purfield. [electronic resource] : Catriona Purfield. - Washington, D.C. : International Monetary Fund, 2007. - 1 online resource (21 p.) - IMF Working Papers; Working Paper ; No. 07/221 . - IMF Working Papers; Working Paper ; No. 07/221 .

This paper examines rising asset prices in India. For the most part, asset prices in India reflect structural factors but the risk of a correction cannot be ruled out. However, at this juncture monetary policy may not be the most effective tool to safeguard financial stability because (i) India's economy is undergoing rapid structural change making it difficult to identify price misalignments; (ii) the macroeconomic impact of an asset price correction is likely to be small; and (iii) the relationship between monetary policy and asset prices is also weak. Targeted changes in financial regulations are better tools to address potential risks.

ISBN: 1451867859 : 18.00 USD

ISSN: 1018-5941

Standard No.: 10.5089/9781451867855.001 doi

Subjects--Topical Terms:
Asset Markets
Commercial Real Estate
Financial Assets
Real Estate
Stock Market
Wealth Effects

Subjects--Geographic Terms:
India