Liquidity, Inflation and Asset Prices in a Time-Varying Framework for the Euro Area
Bank of Canada
Eveline John Durinck
affiliation not provided to SSRN
Ghent University - Department of Financial Economics
October 16, 2008
National Bank of Belgium Working Paper No. 142
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).
Number of Pages in PDF File: 55
Keywords: Liquidity, asset prices, inflation, time-varying coefficients
JEL Classification: E31, E32, E44, E51, E52working papers series
Date posted: October 2, 2010
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