Can global liquidity forecast asset prices? /
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| Author / Creator: | Darius, Reginald, author. |
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| Imprint: | [Washington, D.C.] : International Monetary Fund, ©2010. |
| Description: | 1 online resource (26, [3] pages) : illustrations |
| Language: | English |
| Series: | IMF working paper ; WP/10/196 IMF working paper ; WP/10/196. |
| Subject: | |
| Format: | E-Resource Book |
| URL for this record: | http://pi.lib.uchicago.edu/1001/cat/bib/12498671 |
| Summary: | 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. |
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| Physical Description: | 1 online resource (26, [3] pages) : illustrations |
| Bibliography: | Includes bibliographical references. |
| ISBN: | 9781455227372 1455227374 1282847406 9781282847408 1462317391 9781462317394 9786612847400 6612847409 1455205265 9781455205264 |