Asset price inflation
Asset price inflation is a persistent rise in the price of assets such as stocks, bonds, gold, and real estate.
Sense and measurement
Asset prices are vulnerable to bubbles . Historical examples such as the tulip mania , the collapse in Japanese property prices in 1990 , the bursting of the dot-com bubble in 2000 and the financial crisis from 2007 onwards show the consequences of a subsequent drop in prices .
The Flossbach von Storch Research Institute has published a quarterly asset price index with sub-indices for real assets and financial assets since 2014 .
Differentiation of inflation and asset price inflation
Asset price inflation is not to be confused with inflation measured by the consumer price index in the traditional sense of the word. The consumer price index does not include assets like stocks, etc., only consumer goods. Consequently, asset price inflation is compatible with stable consumer prices and vice versa.
literature
- Christoph Kimmel: Asset price inflation as an economic policy challenge (= writings on economic theory and economic policy . Volume 35 ). Peter Lang Verlag, 2008.