Asset Price Inflation in the 1980's: A Flow of Funds Perspective

By Garry J. Schinasi, Steven Riess Weisbrod, Monica Hargraves

October 1, 1993

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Garry J. Schinasi, Steven Riess Weisbrod, and Monica Hargraves. Asset Price Inflation in the 1980's: A Flow of Funds Perspective, (USA: International Monetary Fund, 1993) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Asset prices, Bank deposits, Banking, Business enterprises, Economic sectors, Financial institutions, Inflation, Prices, Real estate prices, Securities

Keywords: Asset, Asset decision, Asset inflation, Asset price inflation, Asset prices, Bank, Bank assets, Bank depositor, Bank investment, Bank portfolio, Business enterprises, City bank, Deposit, Inflation, Inflation in Japan, Insurance assets, Mortgage market, Net, Price, Real estate prices, Securities, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1993/077
Stock No:

WPIEA0771993
ISBN:

9781451849936
ISSN:

1018-5941

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