forecast errors, along with possible directional misprediction by the forward premium. The implications of bubbles for tests of … forward-rate predictive efficiency are discussed next. It is argued that the existence of bubbles is extremely difficult (if … between spot and forward exchange rates, it seems unlikely that there bubbles have been an important factor. Finally, the …

deterministic bubbles and stochastic bubbles, for a model of inflation and for a model of the evolution of price and quantity in the … market fora storable commodity, such as gold. The analysis focuses on stochastic bubbles as a possibility peculiarly … points to no compelling reason to rule out rational stochastic bubbles apriori, conventional behavioral assumptions imply …

This paper investigates the nature and the presence of bubbles in financial markets. Are bubbles consistent with … are some of the questions asked in the first three sections. The general conclusion is that bubbles, in many markets, are … consistent with rationality, that phenomena such as runaway asset prices and market crashes are consistent with rational bubbles …

The recently-developed fiscal theory of price level determination contends that there is an important class of policy …

The recent theory of exchange rate dynamics within a target zone holds that exchange rates under a currency bard are … rational bubbles does not occur in the foreign exchange market. In this paper we consider instead a setup in which the … the presence of bubbles is viable if the Central Bank accommodates speculative attacks when the latter are consistent with …