Can Global Liquidity Forecast Asset Prices?:
During the period leading up to the global financial crisis many asset classes registered rapid price increases. This coincided with a significant rise in global liquidity. This paper attempts to determine the extent to which the rise in asset prices was influenced by developments in global liquidit...
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1. Verfasser: | |
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2010
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Schriftenreihe: | IMF Working Papers
Working Paper No. 10/196 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | During the period leading up to the global financial crisis many asset classes registered rapid price increases. This coincided with a significant rise in global liquidity. This paper attempts to determine the extent to which the rise in asset prices was influenced by developments in global liquidity. We confirm that global liquidity had a significant impact on the buildup in house prices; however, the impact on equity prices was limited. In contrast to common perception, we find that the impact of global liquidity declined during the period of the Great Moderation. The paper also examines spillovers from global liquidity to domestic variables and concludes that domestic factors generally played a more significant role in house price appreciation relative to global factors. This contradicts the hypothesis of weakened potency of domestic monetary policy in the presence of increased international liquidity |
Beschreibung: | 1 Online-Ressource (25 p) |
ISBN: | 1455205265 9781455205264 |
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spelling | Darius, Reginald Verfasser aut Can Global Liquidity Forecast Asset Prices? Darius, Reginald Washington, D.C International Monetary Fund 2010 1 Online-Ressource (25 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 10/196 During the period leading up to the global financial crisis many asset classes registered rapid price increases. This coincided with a significant rise in global liquidity. This paper attempts to determine the extent to which the rise in asset prices was influenced by developments in global liquidity. We confirm that global liquidity had a significant impact on the buildup in house prices; however, the impact on equity prices was limited. In contrast to common perception, we find that the impact of global liquidity declined during the period of the Great Moderation. The paper also examines spillovers from global liquidity to domestic variables and concludes that domestic factors generally played a more significant role in house price appreciation relative to global factors. This contradicts the hypothesis of weakened potency of domestic monetary policy in the presence of increased international liquidity Online-Ausg http://elibrary.imf.org/view/IMF001/11238-9781455205264/11238-9781455205264/11238-9781455205264.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Darius, Reginald Can Global Liquidity Forecast Asset Prices? |
title | Can Global Liquidity Forecast Asset Prices? |
title_auth | Can Global Liquidity Forecast Asset Prices? |
title_exact_search | Can Global Liquidity Forecast Asset Prices? |
title_exact_search_txtP | Can Global Liquidity Forecast Asset Prices? |
title_full | Can Global Liquidity Forecast Asset Prices? Darius, Reginald |
title_fullStr | Can Global Liquidity Forecast Asset Prices? Darius, Reginald |
title_full_unstemmed | Can Global Liquidity Forecast Asset Prices? Darius, Reginald |
title_short | Can Global Liquidity Forecast Asset Prices? |
title_sort | can global liquidity forecast asset prices |
url | http://elibrary.imf.org/view/IMF001/11238-9781455205264/11238-9781455205264/11238-9781455205264.xml |
work_keys_str_mv | AT dariusreginald cangloballiquidityforecastassetprices |