Please use this identifier to cite or link to this item: http://buratest.brunel.ac.uk/handle/2438/986
Title: Shocks and shock absorbers: The International Propagation Of Equity Market Shocks and the design of appropriate policy responses
Authors: Barrell, R
Davis, EP
Keywords: Financial markets and the macroeconomy, Stabilization policy, Macroeconomic;modelling
Issue Date: 2005
Publisher: Brunel University
Citation: Economics and Finance Working papers, Brunel University, 05-12
Abstract: Equity prices are major sources of shocks to the world economy and channels for propagation of these shocks. We seek to calibrate macroeconomic effects of falls in share prices and assess appropriate policy responses, using the National Institute Global Econometric Model NiGEM. Based on estimated relationships, falls in US equity prices have significant impacts on global activity; potential for liquidity traps suggest a need for complementary monetary and fiscal policy easing. However, fiscal easing boosts long-term real interest rates and hence moderates one of the automatic shock absorbers provided by the market mechanism.
URI: http://bura.brunel.ac.uk/handle/2438/986
Appears in Collections:Economics and Finance
Dept of Economics and Finance Research Papers

Files in This Item:
File Description SizeFormat 
05-12.pdf197.52 kBAdobe PDFView/Open


Items in BURA are protected by copyright, with all rights reserved, unless otherwise indicated.