{"id":187,"date":"2017-11-29T01:03:41","date_gmt":"2017-11-29T01:03:41","guid":{"rendered":"http:\/\/hardouvelis.gr\/?p=187"},"modified":"2018-05-17T17:00:38","modified_gmt":"2018-05-17T14:00:38","slug":"asset-prices-need-new-policy-instruments-case-countercyclical-margin-policy","status":"publish","type":"post","link":"https:\/\/hardouvelis.gr\/el\/asset-prices-need-new-policy-instruments-case-countercyclical-margin-policy\/","title":{"rendered":"Asset Prices and the Need for New Policy Instruments: the Case of Countercyclical Margin Policy"},"content":{"rendered":"<p><strong>Asset Prices and the Need for New Policy Instruments: the Case of Countercyclical Margin Policy<\/strong><\/p>\n<p>Author: Gikas A. Hardouvelis<\/p>\n<p>Issue: <em>Banque De France- Symposium on New Technologies and Monetray Policy, March 2003<\/em><\/p>\n<p>Abstract:<\/p>\n<p>Margin requirements are official restrictions on the amount of credit investors can<br \/>\nreceive from brokers in order to buy or short-sell stock (Hardouvelis, 1988). A<br \/>\nmargin policy of leaning against the wind of stock price fluctuations is stabilizing<br \/>\nboth in the short- and the long-run.<br \/>\nHigher margins reduce both short-run stock price volatility and the possibility that a<br \/>\nbubble unfolds, thus contributing to both short- and long-term stability in the<br \/>\nmarket. Increasing margins is a precautionary measure. At the other end, lower<br \/>\nmargin requirements soften a sudden fall of stock prices without resulting in higher<br \/>\nshort-run volatility. Decreasing margins is an ex-post measure that improves<br \/>\nliquidity, calms the market and softens a crash.<br \/>\nUnlike monetary policy, a countercyclical margin policy can be administered<br \/>\nwithout having to agree on the presence or absence of a bubble and without having<br \/>\nto compromise any other policy objectives. It can also be administered by a<br \/>\nregulator other than the central bank<\/p>\n<p><a href=\"http:\/\/hardouvelis.gr\/wp-content\/uploads\/2017\/11\/Banque_de_France_Margins_2003.pdf\">Download Asset Prices and the Need for New Policy Instruments: the Case of Countercyclical Margin Policy pdf<\/a>\u00a0(pages 331 to 350 of the Issue, 126 to 145 of the .pdf).<\/p>","protected":false},"excerpt":{"rendered":"<p>Asset Prices and the Need for New Policy Instruments: the Case of Countercyclical Margin Policy Author: Gikas A. Hardouvelis Issue:<\/p>\n","protected":false},"author":1,"featured_media":4399,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4,6],"tags":[],"yst_prominent_words":[558,316,546,556,543,538,29,107,202,540,201,554,178,552,545,549,71,560,172,550],"class_list":["post-187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-academic-publications","category-working-papers"],"acf":[],"_links":{"self":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/comments?post=187"}],"version-history":[{"count":5,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/187\/revisions"}],"predecessor-version":[{"id":2615,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/posts\/187\/revisions\/2615"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/media\/4399"}],"wp:attachment":[{"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/media?parent=187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/categories?post=187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/tags?post=187"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/hardouvelis.gr\/el\/wp-json\/wp\/v2\/yst_prominent_words?post=187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}