Research on the Relationship Between Financial Crisis and Global Asset Prices

Abstract

This paper studies the relationship between the financial crisis and global asset prices. The research angle of this paper is different from the previous literature. It not only examines the decline in the global asset price level after the financial crisis, but also finds that before the financial crisis is often accompanied by a huge increase in asset prices. Therefore, it is not difficult to find that there is a relatively complex interaction between the asset prices index and financial crisis. Changes in asset prices is not only be used as early warning indicators of financial crises, but also portray the negative impact of financial crises on the economy and finance. The research results show that before the financial crisis, the global asset price factor is increase by up to 28%, and after the financial crisis, it is decrease by 120%. The research in this paper provides a good reference for how to prevent global financial risks, avoid and quantify the impact.