{
  "title": "Can Global Liquidity Forecast Asset Prices?",
  "publication": "IMF Working Papers, August 1, 2010",
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  "summary": "During the period leading up to the global financial crisis many asset classes registered rapid price increases. This coincided with a significant rise in global liquidity.",
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    {
      "heading": "Summary and research question",
      "content": "- Investigates the extent to which the rise in asset prices leading up to the global financial crisis was influenced by developments in global liquidity.\n- Focuses on house prices and equity prices, and examines spillovers from global liquidity to domestic variables.\n- Tests the hypothesis that increased international liquidity weakened the potency of domestic monetary policy."
    },
    {
      "heading": "Key findings",
      "content": "- Global liquidity had a significant impact on the buildup in house prices.\n- The impact of global liquidity on equity prices was limited.\n- Contrary to common perception, the impact of global liquidity declined during the period of the Great Moderation.\n- Domestic factors generally played a more significant role in house price appreciation relative to global factors.\n- These findings contradict the hypothesis of weakened potency of domestic monetary policy in the presence of increased international liquidity."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Asset and liability management, Asset liquidity, Asset prices, Housing prices, International liquidity, Liquidity indicators, Liquidity management, Prices\n- Keywords: Asset liquidity, asset price, Asset prices, Global, Global Liquidity, Housing prices, International liquidity, Liquidity management, liquidity shock, liquidity surge, market liquidity, price level, Spillover Analysis, WP\n\n---\n\n Content in this bundle\n\n- Wp10196\n  - Wp10196 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Wp10196 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/can-global-liquidity-forecast-asset-prices-24164"
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    "Authors: Reginald Darius",
    "Published: August 1, 2010",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781455205264.001",
    "Investigates the extent to which the rise in asset prices leading up to the global financial crisis was influenced by developments in global liquidity.",
    "Focuses on house prices and equity prices, and examines spillovers from global liquidity to domestic variables.",
    "Tests the hypothesis that increased international liquidity weakened the potency of domestic monetary policy.",
    "Global liquidity had a significant impact on the buildup in house prices.",
    "The impact of global liquidity on equity prices was limited.",
    "Contrary to common perception, the impact of global liquidity declined during the period of the Great Moderation.",
    "Domestic factors generally played a more significant role in house price appreciation relative to global factors.",
    "These findings contradict the hypothesis of weakened potency of domestic monetary policy in the presence of increased international liquidity.",
    "Subject: Asset and liability management, Asset liquidity, Asset prices, Housing prices, International liquidity, Liquidity indicators, Liquidity management, Prices",
    "Keywords: Asset liquidity, asset price, Asset prices, Global, Global Liquidity, Housing prices, International liquidity, Liquidity management, liquidity shock, liquidity surge, market liquidity, price level, Spillover Analysis, WP",
    "**Wp10196**"
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