Similar Search Results

Crisis? What Crisis? Currency vs. Banking in the Financial Crisis of 1931

Ritschl, Albrecht; Sarferaz, Samad - C.E.P.R. Discussion Papers - 2009

This paper examines the role of currency and banking in the German financial crisis of 1931 for both Germany and the U … economies. We find that monetary transmission through the Gold Standard played only a minor role in causing and propagating the …

Persistent link: https://www.econbiz.de/10008493469

Did Inflation Really Soar After the Euro Cash Changeover? Indirect Evidence from ATM Withdrawals

Angelini, Paolo; Lippi, Francesco - C.E.P.R. Discussion Papers - 2005

alleged inflationary effects of the new currency. In Italy, as in the rest of the euro area, survey-based measures signaled a …

Persistent link: https://www.econbiz.de/10005504448

The Bond Market: An Inflation-Targeter's Best Friend

Rose, Andrew K - C.E.P.R. Discussion Papers - 2014

, domestic-currency bond market. Bond holders suffer from inflation and could be a potent anti-inflationary force; I ask whether …

Persistent link: https://www.econbiz.de/10011084572

Currency Unions and International Integration

Engel, Charles M; Rose, Andrew K - C.E.P.R. Discussion Papers - 2001

This Paper characterizes the integration patterns of international currency unions (such as the CFA Franc zone and the … East Caribbean Currency Area). We empirically explore different features of currency unions, and compare them both to … countries with sovereign monies, and to regions within nations. We ask: are countries within international currency unions as …

Persistent link: https://www.econbiz.de/10005666442

Information Acquisition and Portfolio Performance

Guiso, Luigi; Jappelli, Tullio - C.E.P.R. Discussion Papers - 2006

Rational investors perceive correctly the value of financial information. Investment in information is therefore rewarded with a higher Sharpe ratio. Overconfident investors overstate the quality of their own information, and thus attain a lower Sharpe ratio. We contrast the implications of the...

Persistent link: https://www.econbiz.de/10005123525

Money Illusion and Housing Frenzies

Brunnermeier, Markus K; Julliard, Christian - C.E.P.R. Discussion Papers - 2007

A reduction in inflation can fuel run-ups in housing prices if people suffer from money illusion. For example, investors who decide whether to rent or buy a house by simply comparing monthly rent and mortgage payments do not take into account that inflation lowers future real mortgage costs. We...

Persistent link: https://www.econbiz.de/10005067397

The Real Effects of Investor Sentiment

Polk, Christopher; Sapienza, Paola - C.E.P.R. Discussion Papers - 2003

Does inefficiency of financial markets have real consequences? Or does it only result in transfers of wealth from noise traders to arbitrageurs? We study firm business investment to address this question. In our model, benevolent managers of overvalued companies invest in projects with negative...

Persistent link: https://www.econbiz.de/10005067581

Do Individual Investors Have Asymmetric Information Based On Work Experience?

Døskeland, Trond; Hvide, Hans K - C.E.P.R. Discussion Papers - 2009

Using a novel and unique dataset from Norway, we analyze whether professional proximity is associated with asymmetric information and abnormal returns. We find that individuals hold an excess weight in stocks that are professionally close. For example, after excluding holdings of own-company and...

Persistent link: https://www.econbiz.de/10005068286

Hot Markets, Investor Sentiment and IPO Pricing

Ljungqvist, Alexander P.; Nanda, Vikram; Singh, Rajdeep - C.E.P.R. Discussion Papers - 2001

Our model of the initial public offering process links the three main empirical IPO ‘anomalies’ – underpricing, hot issue markets, and long-run underperformance – and traces them to a common source of inefficiency. We relate hot IPO markets (such as the 1999/2000 market for Internet...

Persistent link: https://www.econbiz.de/10005498165

The Gambler's and Hot-Hand Fallacies: Theory and Applications

Rabin, Matthew; Vayanos, Dimitri - C.E.P.R. Discussion Papers - 2007

We develop a model of the gambler's fallacy -- the mistaken belief that random sequences should exhibit systematic reversals. We show that an individual who holds this belief and observes a sequence of signals can exaggerate the magnitude of changes in an underlying state but underestimate their...

Persistent link: https://www.econbiz.de/10005504387