Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/202972 
Year of Publication: 
2017
Series/Report no.: 
Working Paper No. 1718
Publisher: 
Koç University-TÜSİAD Economic Research Forum (ERF), Istanbul
Abstract: 
This paper surveys the literature on the linkages between asset prices and macroeconomic outcomes. It focuses on three major questions. First, what are the basic theoretical linkages between asset prices and macroeconomic outcomes? Second, what is the empirical evidence supporting these linkages? And third, what are the main challenges to the theoretical and empirical findings? The survey addresses these questions in the context of four major asset price categories: equity prices, house prices, exchange rates and interest rates, with a particular focus on their international dimensions. It also puts into perspective the evolution of the literature on the determinants of asset prices and their linkages with macroeconomic outcomes, and discusses possible future research directions.
Subjects: 
Equity prices
exchange rates
house prices
interest rates
credit
output
consumption
investment
real-financial linkages
macro-financial linkages
imperfections
frictions
JEL: 
D53
E21
E32
E44
E51
F36
F44
F65
G01
G10
G12
G14
G15
G21
Document Type: 
Working Paper

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