Asset Prices and Macroeconomic Outcomes : A Survey
This paper surveys the literature on the linkages between asset prices and macroeconomic outcomes. It focuses on three major questions. First, what are the basic theoretical linkages between asset prices and macroeconomic outcomes? Second, what is...
| Main Authors: | , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/599841511879164538/Asset-prices-and-macroeconomic-outcomes-a-survey http://hdl.handle.net/10986/28920 |
| Summary: | This paper surveys the literature on the
linkages between asset prices and macroeconomic outcomes. It
focuses on three major questions. First, what are the basic
theoretical linkages between asset prices and macroeconomic
outcomes? Second, what is the empirical evidence supporting
these linkages? And third, what are the main challenges to
the theoretical and empirical findings? The survey addresses
these questions in the context of four major asset price
categories: equity prices, house prices, exchange rates and
interest rates, with a particular focus on their
international dimensions. It also puts into perspective the
evolution of the literature on the determinants of asset
prices and their linkages with macroeconomic outcomes, and
discusses possible future research directions. |
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