Unless otherwise defined, the shift of short-term money into long-term financial assets or vice versa, closely monitored by central banks. – If liquidity (in this case, central bank money, namely cash and central bank balances) flows increasingly into real estate, there is a risk of a speculative bubble in this submarket (sub-market). – If the money flows into investment loans, the resulting growth could absorb any excess liquidity without causing inflation. – If the money flows into consumption, the resulting increase in demand could pose a risk to price stability. – If cash is held, M3 increases. – See appreciation pressures, carry trades, ejection, money gap, gold price, housing bubble, portfolio insurance, interim parking. – Cf. ECB Monthly Bulletin, July 2004, pp. 13 et seq, ECB Monthly Bulletin of October 2004, p. 52, ECB Monthly Bulletin of January 2005, p. 14 et seq. (including graphs on switching patterns), Deutsche Bundesbank Monthly Bulletin of January 2005, p. 18 et seq. (effects of switching on the relationship between money supply and prices), ECB Monthly Bulletin of February 2005, pp. 21 f. (statistics), ECB Monthly Bulletin of October 2005, p. 63 (shifts due to increased uncertainty), ECB Monthly Bulletin of March 2006, p. 19 ff. (shifts as an expression of fundamentally changed investor behavior), ECB Monthly Bulletin of September 2006, p. 17 (portfolio shifts and M3 since 1999), Deutsche Bundesbank Monthly Report of November 2007, pp. 44 ff. (portfolio shifts as a measure of investors’ risk assessment), ECB Monthly Report of June 2008, pp. 22 ff. (Portfolio shifts from 2003 to 2007; overviews; explanations), ECB Monthly Bulletin of January 2009, p. 18 ff. (Portfolio shifts in the wake of the financial market crisis), ECB Monthly Bulletin of January 2012, p. 20 ff. (Portfolio shifts are influenced by investor uncertainty).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/