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Non-Neutrality of Money:Money Supply Shock and Masterpiece Effect in Art Market 2022-05-24

SubjectNon-Neutrality of Money:Money Supply Shock and Masterpiece Effect in Art Market

Guest: Liu Ruiming, Professor, National Academy of Development and Strategy, RUC

Host: Wang Chunhua, Assistant Professor, ACEM-SJTU

Time: Wednesday, May 25, 2022, 19:30-21:00

Venue: Tencent Meeting

(Please send email to for meeting number and password.)


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.

Guest Bio:

  Liu Ruiming is a professor and doctoral supervisor at the National School of Development and Strategy, Renmin University of China. In recent years, he has been the first author and corresponding author in Economic Research, Management World, Quarterly Journal of Economics, World Economy, China Industrial Economics, Research Policy, Journal of Corporate Finance, and China Economy More than 50 articles have been published in Review and other journals. He has hosted a number of national, provincial and ministerial projects, such as major projects of the National Social Science Foundation, general projects of the National Natural Science Foundation of China, humanities and Social Science Planning projects of the Ministry of Education. Won the seventh Chinese universities "the Ministry of Education science outstanding achievement award", "national excellent doctoral dissertation nomination", "the fourth zhang peigang development economics young scholar award", "the sixth huang da mondale prize in economics", "the first Tan Chong development economics prize", "the fourth yin-xing hong economics prize" and so on various academic honor.