Similar Search Results

Marking to Market, Liquidity and Financial Stability

Plantin, Guillaume; Sapra, Haresh; Shin, Hyun Song - 2010

This paper explores the financial stability implications of mark-to-market accounting, in particular its tendency to amplify financial cycles and the "reach for yield". Market prices play a dual role. Not only do they serve as a signal of the underlying fundamentals and the actions taken by...

Persistent link: https://www.econbiz.de/10014047345

A model of cycles and bubbles under heterogeneous beliefs in financial markets

Burs, Carina - 2023

Persistent link: https://www.econbiz.de/10014225865

A model of cycles and bubbles under heterogeneous beliefs in financial markets

Burs, Carina - In: Cogent economics & finance 11 (2023) 2, pp. 1-29

, abnormally high asset prices can be caused by financial bubbles. In this model, bubbles can emerge and deflate both in cycles or … rate. This can lead to new stable equilibria, but the emergence and bursting of bubbles cannot be prevented. …

Persistent link: https://www.econbiz.de/10014501110

Heterogeneous Intermediary Asset Pricing

Kargar, Mahyar - 2020

I show that the composition of the financial sector has important asset pricing implications beyond the health of the aggregate financial sector. To assess the impact of massive balance sheet adjustments within the intermediary sector during the Great Recession and resolve conflicting asset...

Persistent link: https://www.econbiz.de/10012851231

Investor heterogeneity and large-scale asset purchases

Breckenfelder, Johannes; De Falco, Veronica - 2024

Large-Scale Asset Purchases can impact the price of securities directly, when securities are targeted by the central bank, or indirectly through portfolio re-balancing of private investors. We quantify both the direct and the portfolio re-balancing impact, emphasizing the role of investor...

Persistent link: https://www.econbiz.de/10014528264

Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-Fulfilling Liquidity Crises

Lagos, Ricardo - 2015

We develop a model of monetary exchange in over-the-counter markets to study the effects of monetary policy on asset prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to supply immediacy, both by participating in the...

Persistent link: https://www.econbiz.de/10013015987

Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises

Lagos, Ricardo - 2014

Persistent link: https://www.econbiz.de/10013054305

Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises

Lagos, Ricardo - 2015

Persistent link: https://www.econbiz.de/10012457141

A comment on monetary policy and rational asset price bubbles

Allen, Franklin; Barlevy, Gadi; Gale, Douglas - 2023

Galí (2014) showed that a monetary policy rule that raises interest rates in response to bubbles can paradoxically lead … to larger bubbles. This comment shows that a central bank that wants to dampen bubbles can always do so by raising … argue Galí's model contains additional equilibria in which more aggressive rules dampen bubbles. We show that for these …

Persistent link: https://www.econbiz.de/10014316806

The role of financial intermediaries in monetary policy transmission

Beck, Thorsten; Colciago, Andrea; Pfaijfar, Damjan - 2014

Persistent link: https://www.econbiz.de/10010346124

1
2
3
4
5
6
7
8
9
10
Next
Last