Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27649 
Year of Publication: 
2008
Series/Report no.: 
Discussion Paper Series 1 No. 2008,25
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
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. This paper examines the interactions between money, 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 recently observed relative price change between asset classes and consumer goods.
Subjects: 
Global liquidity
inflation control
monetary policy transmission
asset prices
JEL: 
F01
E52
E31
F42
Document Type: 
Working Paper

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