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:: year 6, Issue 17 (fall 2013) ::
JMBR 2013, 6(17): 47-62 Back to browse issues page
Relationship between Money Base and Asset Price Bubble in the Stock Market
Khadije Nasrollahi *1, Leila Torkey1, Masomeh Ataei Azam2
1- Isfahan University
2- Khomeini Shahr Azad University
Abstract:   (4094 Views)

Consequences of the global financial crisis in 2008 and the resulting recession is one of the greatest examples of asset bubbles damaging effects. The role of monetary policy particularly in the form of high-powered money creation in the formation and explosion of the bubble assets can not be ignored. Expansionary monetary policy through liquidity increament and sending it to the asset markets, Provides asset price bubble growth And the constant increase in demand for these assets can spur this growth. In this study, the presence and size of bubbles in asset markets in the period from 1357 to 1389 have been analyzed. Also, the effects of monetary variables (money, narrow money and monetary base) on the probability of asset bubbles formation during the period of study are tested using a logit model. The results of this analysis show that only in the 2002-2003period, Tehran Stock Exchange has experienced Asset bubble. The relationship between the liquidity growth rate and the rate of change in the assets of the central bank on the probability of asset bubbles formation is positive, and relationship between narrow money, the net liabilities of central banks rate of change and other banks debt to the central bank are negative on the probability of asset bubbles formation.

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Type of Study: Empirical Study |
Received: 2014/08/3 | Accepted: 2014/10/22 | Published: 2014/10/22
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year 6, Issue 17 (fall 2013) Back to browse issues page
فصلنامه پژوهش‌های پولی-بانکی Journal of Monetary & Banking Research
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