紀要論文

‘Perfect’ Real Estate Liquidity and Adjustment Paths to Long-run Equilibrium

eng

09111247

https://doi.org/10.15002/00008722

27

61

76

2013-03

Version of Record

The purpose of this paper is to formulate an example of the international macroeconomic climate with ‘perfect’ real estate liquidity and identify the crucial implications brought about by such extreme degrees of real estate liquidity, or ‘financial’ real estate. For this, we will extend the traditional Keynesian international macroeconomic model, revisited and modified in the study of Branson and Buiter (1983), and construct a simple analytical framework with reference to the recent economic climate with extreme degrees of real estate liquidity. It will be shown that, after the increase in the foreign interest rate, real estate liquidity may help reduce the fluctuations of home output along an adjustment path between one equilibrium position and another. This finding suggests that real estate liquidity may serve as a buffer against influences from foreign countries, although within the setting of a theoretical perfect market.

Article

AA10459262