Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Assessing the link between Price and Financial Stability

Abstract : This paper aims at investigating first the (possibly time-varying) empirical relationship between the level and conditional variances of price and financial stability, and second, the effects of macro and policy variables on this relationship in the United States and the Eurozone. Three empirical methods are used to examine the relevance of A.J. Schwartz's "conventional wisdom" that price stability would yield financial stability. Using simple correlations, VAR and Dynamic Conditional Correlations, we reject the hypothesis that price stability is positively correlated to financial stability. We then discuss the empirical appropriateness of the "leaning against the wind" monetary policy approach.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [27 references]  Display  Hide  Download

https://hal-sciencespo.archives-ouvertes.fr/hal-01070529
Contributor : Spire Sciences Po Institutional Repository Connect in order to contact the contributor
Submitted on : Wednesday, October 1, 2014 - 3:38:20 PM
Last modification on : Wednesday, October 27, 2021 - 2:18:50 PM
Long-term archiving on: : Friday, January 2, 2015 - 11:15:12 AM

File

wp2014-02.pdf
Explicit agreement for this submission

Identifiers

Collections

`

Citation

Christophe Blot, Jérôme Creel, Paul Hubert, Fabien Labondance, Francesco Saraceno. Assessing the link between Price and Financial Stability. 2014. ⟨hal-01070529⟩

Share

Metrics

Record views

329

Files downloads

1358