Money and Asset Prices in Boom and Bust

Congdon, Tim

doi:10.2139/ssrn.839866

Cited by 44 publications

(22 citation statements)

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“…Research by Fisher (1932), Kindleberger (1978), Borio and Lowe (2002), Congdon (2006), Gerdesmeier, Reimers and Roffia (2009 and others suggests that, historically, boom and bust cycles in asset markets have been closely associated with large movements in money and credit aggregates. 7 The different measures of "excessive credit creation" (i.e., the deviation of the global creditͲtoͲGDP ratio from its trend level and global credit growth) used in these studies appear to be good indicators of the buildͲup of financial imbalances and asset price busts.…”

Section: Literature Reviewmentioning

confidence: 99%

Effects of Global Liquidity on Commodity and Food Prices

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily refl ect those of the editors. Terms of use: Documents in Ruhr Economic Papers #323

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Section: Literature Reviewmentioning

confidence: 99%

Effects of Global Liquidity on Commodity and Food Prices

2013

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“…So führt ein geldpolitischer Schock, etwa in Form von Geldmengen-oder Zinsän-derungen zu Umschichtungen in den Portfolios von Anlegern, bis die von den Akteuren gewünschte Relation zwischen Liquidität und Vermögensbeständen wieder erreicht ist (Congdon 2005). Im Anpassungsprozess sind eine höhere Nachfrage nach Vermögens-werten und Preissteigerungen zu erwarten (Friedman, 1988, Meltzer, 1995 …”

Section: Geldpolitik Und Vermögenspreiseunclassified

Geldpolitik und Vermögensmärkte

Dreger¹,

Wolters²

2009

VJH

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“…A positive liquidity shock will affect the quantity and marginal utility of money holdings relative to other financial assets, consumption and capital goods. To restore equilibrium a rebalancing of the liquidity/asset ratio compatible with optimal portfolio allocation is required (Congdon, 2005). The adjustment process triggers higher asset demand and subsequent price increases, see Friedman (1988) and Meltzer (1995).…”

Section: Monetary Policy and Asset Pricesmentioning

confidence: 99%

Liquidity and Asset Prices: How Strong are the Linkages

Dreger

Wolters

2009

SSRN Journal

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Abstract:The appropriate design of monetary policy in integrated financial markets is one of the most challenging areas for central banks. One hot topic is whether the increase in liquidity has contributed to the formation of price bubbles in asset markets in the years preceding the financial crisis. If linkages are strong, the inclusion of asset prices in the monetary policy rule may limit speculative runs and negative spillovers to the real economy in the future. To examine the impacts of liquidity shocks on real share and house prices, VAR models are specified for the US and the euro area, as well as global VARs to control for international feedback. The analysis points to some impact of liquidity shocks on house prices, but the effect is restricted to the US. Stock market prices are not affected. Thus, the results suggest that the link between liquidity and asset prices is fragile and far from being obvious.JEL Classifications: E44, G10, C32, C52

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Money and Asset Prices in Boom and Bust

Cited by 44 publications

References 0 publications

Effects of Global Liquidity on Commodity and Food Prices

Effects of Global Liquidity on Commodity and Food Prices

Geldpolitik und Vermögensmärkte

Liquidity and Asset Prices: How Strong are the Linkages

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