The effect of monetary policy in reducing asset price bubbles in America and Japan

Abstract

The research seeks to assess the efficacy of monetary policy and its instruments in mitigating asset price bubbles by identifying the key elements that contribute to inflation in asset and bond prices in the selected nations. The data was analyzed using the descriptive technique, which was supplemented by the quantitative method. The quantitative method involved conducting cointegration tests and making initial estimations of the model. ARDL The study found that there is a durable integration link in the economies of the nations included in the sample. Topics: monetary policy, asset pricing.