Plantin, Guillaume; Sapra, Haresh; Shin, Hyun-Song - In: Monetary and Economic Studies 23 (2005) S1, pp. 133-155
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...