01675cas a2200241 a 4500 AALejournalIMF009574 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451867855 1018-5941 BD-DhAAL BD-DhAAL Purfield, Catriona. India : Asset Prices and the Macroeconomy / Catriona Purfield. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (21 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper examines rising asset prices in India. For the most part, asset prices in India reflect structural factors but the risk of a correction cannot be ruled out. However, at this juncture monetary policy may not be the most effective tool to safeguard financial stability because (i) India's economy is undergoing rapid structural change making it difficult to identify price misalignments; (ii) the macroeconomic impact of an asset price correction is likely to be small; and (iii) the relationship between monetary policy and asset prices is also weak. Targeted changes in financial regulations are better tools to address potential risks. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2007/221 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/221/001.2007.issue-221-en.xml IMF e-Library