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Monetary Policy and Asset Price Volatility

Bernanke, Ben - 2000

We explore the implications of asset price volatility for the management of monetary policy. We show that it is desirable for central banks to focus on underlying inflationary pressures. Asset prices become relevant only to the extent they may signal potential inflationary or deflationary...

Persistent link: https://www.econbiz.de/10012471216

Housing Supply and Housing Bubbles

Glaeser, Edward L. - 2008

of housing bubbles that predicts that places with more elastic housing supply have fewer and shorter bubbles, with … smaller price increases. However, the welfare consequences of bubbles may actually be higher in more elastic places because …

Persistent link: https://www.econbiz.de/10012464454

A Short Note on the Size of the Dot-Com Bubble

DeLong, J. Bradford - 2006

A surprisingly large amount of commentary today marks the beginning of the dot-com bubble of the late 1990s from either the Netscape Communications initial public offering of 1995 or Alan Greenspan's "irrational exuberance" speech of 1996. We believe that this is wrong: we see little sign that...

Persistent link: https://www.econbiz.de/10012466660

Bubbles and Capital Flow Volatility : Causes and Risk Management

Caballero, Ricardo J. - 2005

Emerging market economies are fertile ground for the development of real estate and other financial bubbles. Despite … value in the developed world. Bubbles are beneficial because they provide domestic stores of value and thereby reduce … capital flow reversals. We show that domestic financial underdevelopment not only facilitates the emergence of bubbles, but …

Persistent link: https://www.econbiz.de/10012467059

Monetary Policy and Asset Prices : A Look Back at Past U.S. Stock Market Booms

Bordo, Michael D. - 2004

This paper examines the economic environments in which past U.S. stock market booms occurred as a first step toward understanding how asset price booms come about and whether monetary policy should be used to defuse booms. We identify several episodes of sustained rapid rise in equity prices in...

Persistent link: https://www.econbiz.de/10012467986

Housing Bubbles

Glaeser, Edward L. - 2014

bubble. In this paper, we review the stylized facts of housing bubbles and discuss theories that can potentially explain … bubbles. Many non-rational explanations for real estate bubbles exist, but the most promising theories emphasize some form of …

Persistent link: https://www.econbiz.de/10012458241

Macroeconomic Volatility in Latin America : A View and Three Case Studies

Caballero, Ricardo J. - 2000

After decades of trial, error, and occasional regress the pieces of a successful Latin American economic model can be seen scattered among the leading economies of the region. The most traditional macroeconomic maladies of the emerging world - such as chronic fiscal imbalances and monetary...

Persistent link: https://www.econbiz.de/10012470968

International Capital Movements, Financial Volatility and Financial Instability

Mishkin, Frederic S. - 1999

This lecture outlines an asymmetric information theory of financial instability which describes the fundamental forces which harm both the financial sector and economic activity. This asymmetric information framework is then used to demonstrate that although international capital movements and...

Persistent link: https://www.econbiz.de/10012471510

Financial Market Risk Perceptions and the Macroeconomy

Pflueger, Carolin - 2019

We propose a novel measure of risk perceptions: the price of volatile stocks (PVS<sub>t</sub>), defined as the book-to-market ratio of low-volatility stocks minus the book-to-market ratio of high-volatility stocks. PVS<sub>t</sub> is high when perceived risk directly measured from surveys and option prices is low....

Persistent link: https://www.econbiz.de/10012480235

Determinants of Financial Stress and Recovery during the Great Recession

Aizenman, Joshua - 2010

In this paper, we explore the link between stress in the domestic financial sector and the capital flight faced by countries in the 2008-9 global crisis. Both the timing of emergence of internal financial stress in developing economies, and the size of the peak-trough declines in the stock price...

Persistent link: https://www.econbiz.de/10012462052