Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/29799 
Year of Publication: 
2009
Series/Report no.: 
DIW Discussion Papers No. 933
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
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. We investigate the interactions between money and 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 observed relative price change between asset classes and consumer goods.
Subjects: 
Global liquidity
inflation control
monetary policy transmission
asset prices
JEL: 
E31
E52
F01
F42
Document Type: 
Working Paper

Files in This Item:
File
Size
542.58 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.