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).

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Authors:	Baumeister, Christiane ; Durinck, Eveline ; Peersman, Gert
Institutions:	Centre for Finance, Credit and Macroeconomics (CFCM), School of Economics
Subject:	Liquidity \| asset prices \| inflation \| time-varying coefficients

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Extent:	application/pdf
Series:	Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008871010