In the final part of this presentation, I will discuss property price indexes, and outline an attempt to obtain relevant price information in a timely manner. Timely and accurate data on property prices is of utmost importance in responding to a property bubble, especially in emerging markets. (Yongheng Deng will discuss this issue in the context of China.) 1.
Prices are likely to be steady in the immediate future, since downward pressures on prices are not as significant as was the case in 1995, when the yen’s appreciation induced a penetration of imports, which then directly dampened prices of import-competing domestic final goods, arousing concerns for a deflationary spiral in the economy.