Liquidity and the dynamic pattern of asset price adjustment: A global view |
| |
Authors: | Ansgar Belke Walter Orth Ralph Setzer |
| |
Affiliation: | 1. Department of Macroeconomics, University of Duisburg-Essen and DIW, Berlin, Germany;2. Department of Statistics and Econometrics, University of Cologne, Germany;3. Directorate General for Economic and Financial Affairs, European Commission, Brussels and Deutsche Bundesbank, Frankfurt, Germany |
| |
Abstract: | Global liquidity expansion has been very dynamic since 2001. Contrary to conventional wisdom, high money growth rates have not coincided with a concurrent rise in goods prices. At the same time, however, asset prices have increased sharply, significantly outpacing the subdued development in consumer prices. We investigate the interactions between money and goods and asset prices at the global level. Using aggregated data for major OECD countries, our VAR results support the view that different price elasticities on asset and goods markets explain the observed relative price change between asset classes and consumer goods. |
| |
Keywords: | E31 E52 F01 F42 |
本文献已被 ScienceDirect 等数据库收录! |
|