Download or read book The Comovement of Stock Market Money Supply and Housing Prices written by Chen Chen and published by . This book was released on 2013 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates monthly data of S & P 500, M2 and S & P/Case-Shiller Home Price Indices (Composite-10) from Jan, 1987 to Nov, 2012. Impulse response analysis and variable decomposition is performed to detect the dynamic relationship among the three variables in response to the exogenous shocks. Then unite root test is also conducted to analyze the stationarity, and build error correction model on the basis of cointegration procedure. The results of the empirical analysis include: stock market, money supply and housing prices are all nonstationary, however, their first-difference series are all stationary; There exists cointegration relationship among stock market, money supply and housing prices; ECM indicates stock market, money supply and housing prices can return to equilibrium when they deviate form long-run equilibrium; In the short term, each variable responses promptly by one-standard-deviation innovations of itself and has lagged responses to the shock of the other two variables. Thus, for stock market, money supply and housing prices, we can predict the trend of one variables through controlling the other two.
Download or read book The Effects of Housing Prices and Monetary Policy in a Currency Union written by Oriol Aspachs-Bracons and published by International Monetary Fund. This book was released on 2011-01-01 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent boom-and-bust cycle in housing prices has refreshed the debate on the drivers of housing cycles as well as the appropriate policy response. We analyze the case of Spain, where housing prices have soared since it joined the EMU. We present evidence based on a VAR model, and we calibrate a New Keynesian model of a currency area with durable goods to explain it. We find that labor market rigidities provide stronger amplification effects to all type of shocks than financial frictions do. Finally, we show that when the central bank reacts to house prices, the non-durable sector suffers an important contraction. As a result, the boom-and-bust cycle would not have been avoided if Spain had remained outside the EMU during the 1996-2007 period.
Download or read book A Consideration of the Influence of Money Supply on Stock Market Prices written by Timothy Craig Livengood and published by . This book was released on 1975 with total page 272 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An analysis of the effect of changes in the money supply on stock prices written by Samuel S. Clayton and published by . This book was released on 1968 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Real Estate Price Inflation Monetary Policy and Expectations in the United States and Japan written by Hossein Samiei and published by International Monetary Fund. This book was released on 1994 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: During the mid- to late 1980s, inflationary pressures were highly concentrated in asset markets in many industrial countries. This paper discusses why this may have occurred and then develops a forward-looking supply and demand model of the real estate market in which equilibrium prices depend on price expectations, monetary conditions, income, returns to alternative assets, and construction costs. In this model, the current equilibrium price is determined by expectations formed in different time periods by consumers and producers. The model and its more generalized dynamic specifications are estimated by maximum-likelihood methods. The empirical results do not reject the view that the relationship between real estate values and monetary policy was altered in 1980s.
Download or read book The Money Supply and the Stock Market written by Michael S. Rozeff and published by . This book was released on 2005 with total page 7 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article examines several stock market trading rules that use publicly available money supply data. None of the rules predicts the future stock market behavior and none provides returns in excess of a comparison buy-and-hold rule. Stock returns are related to current and future money supply changes, however. That is, the stock market anticipates upcoming changes in money supply. Linear regression models that allow foresight of future money supply are able to beat the market. This shows that regression models are powerful enough to produce abnormal returns - if they have non-publicly available information.
Download or read book The Housing Boom and Bust written by Thomas Sowell and published by Basic Books (AZ). This book was released on 2009-05-12 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explains how we got into the current economic disaster that developed out of the economics and politics of the housing boom and bust. The "creative" financing of home mortgages and "creative" marketing of financial securities based on these mortgages to countries around the world, are part of the story of how a financial house of cards was built up--and then collapsed.
Download or read book Housing Finance and Real Estate Booms written by Mr.Eugenio Cerutti and published by International Monetary Fund. This book was released on 2015-06-03 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent global crisis highlighted the risks stemming from real estate booms. This has generated a growing literature trying to better understand the sources and the risks associated with housing and credit booms. This paper complements and supplements the previous work by (i) exploiting more disaggregated data on credit allowing us to dissociate between firm-credit and household (and in some cases mortgage) credit, and (ii) by taking into account the characteristics of the mortgage market, including institutional as well as other factors that vary across countries. This detailed cross-country analysis offers new valuable insights.
Download or read book Money and Stock Prices written by Michael S. Rozeff and published by . This book was released on 2009 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines stock market efficiency with respect to money supply data by testing (1) regression models of stock returns on monetary variables and (2) trading rules based on money supply data. The evidence indicates no meaningful lag in the effect of monetary policy on the stock market and that no profitable trading rules using past values of the money supply exist. Therefore this evidence is consistent with the efficient market model. Current security returns incorporate all information contained in past money supply data and, in addition, appear to anticipate future changes in the money supply. A number of previous studies have concluded that lags exist and can be used in profitable trading rules. Analysis of these studies demonstrates that for a variety of reasons the evidence in these past studies does not sustain such conclusions.
Download or read book Effect of Money Supply on Stock Prices written by Morassa Sholeh Danai and published by . This book was released on 1990 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Money Supply and Stock Prices written by Kwok Lam Chiu and published by . This book was released on 1982 with total page 88 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How to Deal with Real Estate Booms written by Mr.Pau Rabanal and published by International Monetary Fund. This book was released on 2011-04-01 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: The financial crisis showed, once again, that neglecting real estate booms can have disastrous consequences. In this paper, we spell out the circumstances under which a more active policy agenda on this front would be justified. Then, we offer tentative insights on the pros and cons as well as implementation challenges of various policy tools that can be used to contain the damage to the financial system and the economy from real estate boom-bust episodes.
Download or read book Stock Market Efficiency and the Money Supply written by Jason Patterson and published by . This book was released on 1996 with total page 110 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examines the effect of money supply changes on stock returns in the context of a complete economic system, using an IS/LM open economy model.
Download or read book The Money Supply and the Stock Market written by Anton G. Rerecich and published by . This book was released on 1979 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Money Supply and Common Stock Prices written by Philip D. Nathanson and published by . This book was released on 1975 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Study of the Relationship Between Changes in Money Supply and Changes in Stock Prices written by Martin Casdin and published by . This book was released on 1976 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Money Supply and Stock Prices written by Jeffrey Allan Parsley and published by . This book was released on 1973 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt:
