Title: Non-Neutrality of Money： Money Supply Shock and Masterpiece Effect in Art Market
Speaker: Ruiming Liu（Professor, National Academy of Development and Strategy, Renmin University of China）
Description： The ongoing debate of whether money is neutral or not is one of the central topics in economics. With the exogenous shock of the money supply of China’s Four Trillion Stimulus Plan at the end of 2008, we use the unique art auction database of Chinese paintings from 2005 to 2013 to provide evidence for the non-neutrality of money from the perspective of the art market. The study finds that after the implementation of the aforementioned plan, the hammer price increase rates of the published masterpieces are higher than those of other works of art. We then carry out robustness tests from four aspects (subsample regression, parallel trend test, placebo test, and elimination of alternative hypotheses), and the results remain stable. Moreover, the results of heterogeneity analysis show that masterpieces with more publications, collected by celebrities, and created by famous artists have greater price growth. The results of this study validate Hayek’s theory that monetary shocks change the relative price and enrich the understanding of the masterpiece effect in the art market.
Time： May 12th, 2022（Thursday），14:00-16:00
Venue: Tencent meeting Room ID：219-789-850
