of an asset price bubble. In an economy with a highly leveraged financial structure, the central bank has an incentive to … asset prices above their fundamental value. The paper shows that the size of such a bubble is likely to be rather small. The … bubble is only equal to the expected value of capital gains on outstanding debt, which are fairly limited in a crisis. Since …

Bubbles are omnipresent in lab experiments with asset markets. Most of these experiments were conducted in environments … smaller bubbles if human traders expect algorithmic traders to be present. …

This paper deals with cryptocurrency bubbles. First, it points out that a number of recent papers on cryptocurrency … bubbles are awed due to an insufficient consideration of the fundamental value of cryptocurrencies. As even fiat money is said … to exhibit features of bubbles, the same applies to cryptocurrencies. Thus, any empirical investigation into either the …

This paper examines how monetary expansion causes asset bubbles. When there is no monetary expansion, a bubbly asset is … to buy a worthless asset from sellers, in hopes of selling it to buyers who may not know that it is worthless-a bubble …

lend to traders with limited liability in a bubble is endogenous. Bubbles reduce welfare of future investors. We provide …We develop a model of rational bubbles based on leverage and the assumption of an imprecisely known maximum market size …. In a bubble, traders push the asset price above its fundamental value in a dynamic way, driven by rational expectations …

observers believed that stock market overvaluation - or a bubble - led to overinvestment. Both the standard and overinvestment … between 15.1% and 45.2% too much capital. These estimates suggest that, even before they burst, bubbles adversely affect … economic activity by misallocating capital. -- bubbles ; investment ; stock markets ; real effects of financial markets …

, speculative bubbles and post-bubble secular stagnation. To prevent a similar scenario for China capital controls, a tighter …