Demand for broad money in Singapore: does wealth matter?

Baharumshah, Ahmad Zubaidi; Soon, Siew-Voon

doi:10.1007/s12197-013-9267-x

Cited by 3 publications

(1 citation statement)

References 40 publications

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“…In turn, other authors proved the causality in the opposite direction. Ramcharan and Crowe (2013) evidenced that asset price fluctuations may determine credit conditions and may propagate a macroeconomics shock, while Baharumshah and Soon (2015) demonstrated that housing prices have a sizeable and significant impact on the demand for broad money. A certain compromise between the two distinctive results is the article of Anundsen and Jansen (2013) who found self-reinforcing effects between house prices and credit.…”

Section: Literature Reviewmentioning

confidence: 99%

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Ryczkowski

2019

Journal of Business Economics and Management

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This paper investigates the relationship between money/credit growth and house price inflation for a sample of twelve developed countries. The novel application of the continuous wavelet transform showed significant but time-varying linkages between these two variables. During quantitative easing in the United States and the United Kingdom, growth of respectively broad money and bank credit was leading house price inflation for the 2-8 years cycle. In contrast to this, the Bank of Japan and the European Central Bank either did not assign a separate role to house prices in their reaction functions or the two central banks were not capable to significantly increase house prices by extending money/credit during the business cycle. The significant co-movements of financial variables and house prices around booming episodes warn us that a new asset price boom might appear within the length of a business cycle as a consequence of overly expansionary monetary policy. In the euro area, the significant, long run, and close to a one-for-one link between growth of M3 and house price inflation is an argument for the monetary pillar of the European Central Bank. The present study contributes significantly to the literature by introducing a novel application of a continuous wavelet transform to study the housing prices in relation to money, credit and quantitative easing. The article uses a long-term dataset covering a period of almost half a century to analyse their varying relationship in the short-run to the long-run and from the historical perspective.

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Section: Literature Reviewmentioning

confidence: 99%

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Ryczkowski

2019

Journal of Business Economics and Management

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The demand for money in Angola

Barros¹,

Faria

Gil-Alana

2016

J Econ Finan

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The macroeconomic determinants of cross-country efficiency in wealth maximization

Rosid

Xuefeng

Paul

et al. 2020

IJRBS

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In the arena of economic analysis, the wealth of a nation is getting more and more attention to be a better indicator to evaluate the status of an economy. This paper had studied the aggregate household wealth of different nations of the world, 106 countries, for the year 2009-2018. During these years, only two countries of the world, China and the USA have managed to increase their wealth tremendously over the last decade while others experienced a slow pace in the growth of wealth. To satisfy the query of how efficient these countries were in maximizing their wealth, a stochastic frontier approach (SFA) has been used to predict the technical efficiency dependent variable and then generalized methods of moments (GMM) and other models have been used to find out the determinants of this efficiency. The study had come up with the result that land, labor, and capital mainly contributed to the output of wealth maximization while past year level of efficiency, export, and import played the main roles in determining the wealth maximizing efficiency status of a nation. It is found that there is a negative relationship between past-year efficiency with current years and the more a country imports, the less efficient the country is while the more it exports, the more efficient the country is in maximizing wealth.

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Demand for broad money in Singapore: does wealth matter?

Cited by 3 publications

References 40 publications

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

Money, Credit, House Prices and Quantitative Easing – The Wavelet Perspective From 1970 to 2016

The demand for money in Angola

The macroeconomic determinants of cross-country efficiency in wealth maximization

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