Please use this identifier to cite or link to this item: http://hdl.handle.net/2445/112125
Title: Seeking price and macroeconomic stabilisation in the euro area:The role of house prices and stock prices
Author: Shah, Imran Hussain
Sosvilla Rivero, Simón, 1961-
Keywords: Accions (Borsa)
Capital social (Economia)
Inflació
Stocks
Capital stock
Inflation
Issue Date: 2017
Publisher: Universitat de Barcelona. Institut de Recerca en Economia Aplicada Regional i Pública
Abstract: We propose an Economic Stability Index (ESI) incorporating house prices and stock prices as components of the measure of the inflation rate in order to allow the European Central Bank (ECB) to achieve both price and macroeconomic stability. We use an optimisation approach to estimate target weights for different sectoral prices in the broader price index, which depend on sectoral parameters other than those used to compute the Harmonised Index of Consumer Prices applied by the ECB to gauge price stability in the euro area (EA). Our results suggest that if the ECB had targeted the ESI, it would have implemented a different monetary policy which would had increased stability in the EA’s economic activity and would have helped to create adequate preconditions for sustainable economic growth and job creation.
Note: Reproducció del document publicat a: http://www.ub.edu/irea/working_papers/2017/201710.pdf
It is part of: IREA – Working Papers, 2017, IR17/10
URI: http://hdl.handle.net/2445/112125
ISSN: 2014-1254
Appears in Collections:Documents de treball (Institut de Recerca en Economia Aplicada Regional i Pública (IREA))

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