Asset Prices and Macroeconomic Outcomes: A Survey

Ayhan Kose and Stijn Claessens ()

No 12460, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: 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.

Keywords: Real-financial linkages; Macro-financial linkages; Equity prices; Imperfections; frictions; Asset prices (search for similar items in EconPapers)
JEL-codes: D53 E21 E32 E44 E51 F36 F44 F65 G01 G10 G12 G14 G15 G21 (search for similar items in EconPapers)
Date: 2017-11
New Economics Papers: this item is included in nep-acc, nep-fdg, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

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Related works:
Working Paper: Asset prices and macroeconomic outcomes: a survey (2017)
Working Paper: Asset prices and macroeconomic outcomes: A survey (2017)
Working Paper: Asset Prices and Macroeconomic Outcomes: A Survey (2017)
Working Paper: Asset prices and macroeconomic outcomes: a survey (2017)
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