Gauge on Interest Rate Hike

2 Pages Posted: 3 Jan 2014 Last revised: 26 Jan 2014

Date Written: January 26, 2014

Abstract

Currently, interest rate hike is usually triggered by the rise in inflation. When there is a high inflation, then, interest rate hike will be implemented to cool down the market. However, is this a good indicator for interest rate hike. From the lesson in the Financial Tsunami, we may need to revise the policy on timing of interest rate hike.

Keywords: interest rate policy, financial tsunami, asset bubble, asset-adjusted CPI

JEL Classification: E43, E58

Suggested Citation

Yuen, Raymond Wai Pong, Gauge on Interest Rate Hike (January 26, 2014). Available at SSRN: https://ssrn.com/abstract=2374216 or http://dx.doi.org/10.2139/ssrn.2374216

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