Narrow search
Showing 1 - 10 of 2,771
Cover Image
Asset Price Bubbles and Systemic Risk
Brunnermeier, Markus K. - 2019
We analyze the relationship between asset price bubbles and systemic risk, using bank-level data covering almost thirty …
Persistent link: https://www.econbiz.de/10012479725
Cover Image
Exchange Rate Pass-Through, Monetary Policy, and Real Exchange Rates : Iceland and the 2008 Crisis
Edwards, Sebastian; Cabezas, Luis - National Bureau of Economic Research - 2021
We use detailed data for Iceland to examine two often-neglected aspects of the "exchange rate pass-through" problem … price indexes in Iceland for 2003-2019, a period that includes Iceland's banking and currency crisis of 2008. We find that … the pass-through declined around the time Iceland reformed its "flexible inflation targeting," and that the coefficients …
Persistent link: https://www.econbiz.de/10012496073
Cover Image
Theoretical Notes on Bubbles and the Current Crisis
Martin, Alberto - 2010
We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets. We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications. In particular, we show how the...
Persistent link: https://www.econbiz.de/10012462257
Cover Image
Indeterminacy, Bubbles, and the Fiscal Theory of Price Level Determination
McCallum, Bennett T. - 1998
The recently-developed fiscal theory of price level determination contends that there is an important class of policy rules in which there exists a unique rational expectations solution that shows the price level to be dependent upon fiscal policy and independent of monetary variables. The...
Persistent link: https://www.econbiz.de/10012472349
Cover Image
The Fiscal Theory of Price Level with a Bubble
Brunnermeier, Markus K. - 2020
This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inflation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital returns...
Persistent link: https://www.econbiz.de/10012481699
Cover Image
Credit Booms, Financial Crises and Macroprudential Policy
Gertler, Mark - 2020
We develop a model of banking crises which Is consistent with two important features of the data: First, banking crises are usually preceded by credit booms. Second, credit booms often do not result in a crisis. That is, there are "good" booms as well as "bad" booms in the language of Gorton and...
Persistent link: https://www.econbiz.de/10012481336
Cover Image
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
Cover Image
Pride Goes Before a Fall : Federal Reserve Policy and Asset Markets
Reinhart, Carmen M. - 2011
Considerable debate rages about whether Federal Reserve policy was too lax in the early part of the 2000s, thereby fueling the home-price bubble that was the proximate cause of the global financial crisis. We present evidence that the view that modest alterations to monetary policy have vast...
Persistent link: https://www.econbiz.de/10012461842
Cover Image
Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises
Lagos, Ricardo - 2015
We develop a model of monetary exchange in over-the-counter markets to study the effects of monetary policy on asset prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to supply immediacy, both by participating in the...
Persistent link: https://www.econbiz.de/10012457141
Cover Image
Bubbles, Crises, and Heterogeneous Beliefs
Xiong, Wei - 2013
individuals, to explain bubbles, crises, and endogenous risk in financial markets …
Persistent link: https://www.econbiz.de/10012459756