Global Excess Liquidity and House Prices - A VAR Analysis for OECD Countries



As always, some important questions remain unanswered in this paper. Let us
just mention two of them. First, over the last 30 years, the Euro area index for real
housing prices has tended to follow that of the US quite closely, but with a lag of
around 18 months. Given that the US market turned in mid-2006, one could thus
expect that the Euro area market is likely to do the same as 2007 turns into 2008
(Gros, 2007). Will the world excess liquidity in the end be capable to stop this
trend? Second, there is still empirical work missing which augments
national VAR
models with
foreign money. We leave these tasks for future research.

25



More intriguing information

1. The name is absent
2. Naïve Bayes vs. Decision Trees vs. Neural Networks in the Classification of Training Web Pages
3. A Computational Model of Children's Semantic Memory
4. Direct observations of the kinetics of migrating T-cells suggest active retention by endothelial cells with continual bidirectional migration
5. The name is absent
6. Why unwinding preferences is not the same as liberalisation: the case of sugar
7. A Study of Prospective Ophthalmology Residents’ Career Perceptions
8. The Context of Sense and Sensibility
9. Weak and strong sustainability indicators, and regional environmental resources
10. Response speeds of direct and securitized real estate to shocks in the fundamentals