Liquidity, inflation and asset prices in a time-varying framework for the euro area

In this paper, we investigate how the dynamic effects of excess liquidity shocks on economic activity, asset prices and inflation differ over time. We show that the impact varies considerably over time, depends on the source of increased liquidity (M1, M3-M1 or credit) and the underlying state of the economy (asset price boom-bust, business cycle, inflation cycle, credit cycle and monetary policy stance).

MoreLess

Year of publication:	2008-10
Authors:	Baumeister, Christiane ; Durinck, Eveline ; Peersman, Gert
Institutions:	Nationale Bank van België/Banque national de Belqique (BNB)
Subject:	Liquidity \| asset prices \| inflation \| time-varying coefficients

More details

Extent:	application/pdf
Series:	Working Paper Research.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 142 55 pages
Classification:	E31 - Price Level; Inflation; Deflation ; E32 - Business Fluctuations; Cycles ; E44 - Financial Markets and the Macroeconomy ; E51 - Money Supply; Credit; Money Multipliers ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005060033