Cover IMF Working Papers
Asset Price Inflation in the 1980's: A Flow of Funds Perspective
Author: Mr. Garry J. Schinasi, Mr. Steven Riess Weisbrod, and Ms. Monica Hargraves
Series:
IMF Working Papers
Volume/Issue:
Volume 1993: Issue 077
Language:
English
Publication Date:
01 Oct 1993
DOI:
https://doi.org/10.5089/9781451849936.001
ISBN:
9781451849936
ISSN:
1018-5941
Pages:
40
Keywords:
WP; asset; bank; price; deposit; net; asset price inflation; asset inflation; bank assets; inflation in Japan; city bank; bank investment; asset decision; bank portfolio; mortgage market; insurance assets; bank depositor; Real estate prices; Inflation; Asset prices; Business enterprises; Securities
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper examines how and why financial resources were channeled almost exclusively to specific asset markets in Japan, the United Kingdom, and the United States in the late 1980s. A decline in demand for funds by traditional borrowers, and a shift by savers from banks toward indirect securities investments were critical factors in all three cases. Until intermediaries and investors learned to evaluate new opportunities, funds were recycled in certain asset markets. The pressures on Japanese asset markets were particularly intense because of the size of Japan’s domestic saving relative to traditional domestic investment opportunities.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund