-19-
Apart from a common liquidity driving force, global demand and house price
shocks prove to be important as well. For example, a sudden change in the global GDP
disturbance leads to temporary higher inflation from quarter two to quarter eleven.
Significant responses of common factors can also be found after a global house price
shock. In contrast, the common short-term interest rate is not a driving but a driven force
in the global economy. For example, an interest rate shock does not trigger any
significant response of the common house price factor. Instead, a sudden change in the
disturbance of residential property prices leads to an increasing short-term interest rate.
The same insignificant results are found for the inflation factor and commodity and share
prices (see Table A1 for more results).
Chart 2 - Impulse response analysis in SFAVAR (various global shocks)
01
234567891011121314151617181920
01
234567891011121314151617181920
More intriguing information
1. Public infrastructure capital, scale economies and returns to variety2. Delayed Manifestation of T ransurethral Syndrome as a Complication of T ransurethral Prostatic Resection
3. Spatial patterns in intermunicipal Danish commuting
4. Forecasting Financial Crises and Contagion in Asia using Dynamic Factor Analysis
5. Beyond Networks? A brief response to ‘Which networks matter in education governance?’
6. The name is absent
7. Improvements in medical care and technology and reductions in traffic-related fatalities in Great Britain
8. The name is absent
9. Spectral calibration of exponential Lévy Models [1]
10. The name is absent