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

40 Pages Posted: 15 Feb 2006

See all articles by Monica Hargraves

Monica Hargraves

affiliation not provided to SSRN

Garry J. Schinasi

Independent Advisor, Global Financial Stability

Steven R. Weisbrod

Consultant; Inter-American Development Bank (IDB)

Date Written: October 1993

Abstract

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.

JEL Classification: E31, E44, G21

Suggested Citation

Hargraves, Monica and Schinasi, Garry J. and Weisbrod, Steven R., Asset Price Inflation in the 1980s: A Flow of Funds Perspective (October 1993). IMF Working Paper, Vol. , pp. 1-40, 1993. Available at SSRN: https://ssrn.com/abstract=883797

Monica Hargraves (Contact Author)

affiliation not provided to SSRN

Garry J. Schinasi

Independent Advisor, Global Financial Stability ( email )

Washington, 20008
+1-202-361-0958 (Phone)

Steven R. Weisbrod

Consultant

Inter-American Development Bank (IDB)

1300 New York Avenue NW
Washington, DC 20577
United States
202-623-2445 (Phone)

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