Monetary Policy and Asset Prices in a Small Open Economy: A Factor-Augmented VAR Analysis for Singapore

• Main Authors: CHOW, Hwee Kwan, CHOY, Keen Meng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2009
• Subjects: Monetary Policy; Asset Prices; Dynamic Factors; Vector Autoregression; Singapore; Asian Studies; Finance; International Economics
• Online Access: https://ink.library.smu.edu.sg/soe_research/1223; https://ink.library.smu.edu.sg/context/soe_research/article/2222/viewcontent/MonetaryPolicyandAssetPrices.pdf
• Institution: Singapore Management University

The ongoing global financial turmoil has revived the question of whether central bankers ought to tighten monetary policy preemptively in order to head off asset price misalignments before a sudden crash triggers financial instability. This study explores the issue of the appropriate monetary policy...