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Hong, Harrison - 2005

We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with …

Persistent link: https://www.econbiz.de/10012467316

The Effects of Monetary Policy on Stock Market Bubbles : Some Evidence

Gali, Jordi - 2014

"conventional" view on the effects of monetary policy on bubbles, as well as with the predictions of bubbleless models. We also …

Persistent link: https://www.econbiz.de/10012458683

Speculative Betas

Hong, Harrison - 2012

We provide a model for why high beta assets are more prone to speculative overpricing than low beta ones. When investors disagree about the common factor of cash-flows, high beta assets are more sensitive to this macro-disagreement and experience a greater divergence-of-opinion about their...

Persistent link: https://www.econbiz.de/10012460112

Leverage and Asset Bubbles : Averting Armageddon with Chapter 11?

Miller, Marcus - 2010

An iconic model with high leverage and overvalued collateral assets is used to illustrate the amplification mechanism driving asset prices to 'overshoot' equilibrium when an asset bubble bursts--threatening widespread insolvency and what Richard Koo calls a 'balance sheet recession'

Persistent link: https://www.econbiz.de/10012462797

Retirement and the Stock Market Bubble

Gustman, Alan L. - 2002

This paper specifies and estimates a structural dynamic stochastic model of the way individuals make retirement and saving choices in an uncertain world, and applies that model to analyze the effects of the stock market bubble on retirement behavior. The model includes individual variation both...

Persistent link: https://www.econbiz.de/10012469299

Bubbles and Capital Flows

Ventura, Jaume - 2002

This paper presents a stylized model of international trade and asset price bubbles. Its central insight is that … bubbles tend to appear and expand in countries where productivity is low relative to the rest of the world. These bubbles … productivity countries. Through this channel, bubbles act as substitute for international capital flows, improving the …

Persistent link: https://www.econbiz.de/10012469402

Boom-Busts in Asset Prices, Economic Instability, and Monetary Policy

Bordo, Michael D. - 2002

The link between monetary policy and asset price movements has been of perennial interest to policy makers. In this paper we consider the potential case for pre-emptive monetary restrictions when asset price reversals can have serious effects on real output. First, we provide some historical...

Persistent link: https://www.econbiz.de/10012469748

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

Rational Finite Bubbles

Allen, Franklin - 1991

There has been a long-running debate about whether stock market prices are determined by fundamentals. To date no consensus has been reached. An important issue in this debate concerns the circumstances in which deviations from fundamentals are consistent with rational behavior. A...

Persistent link: https://www.econbiz.de/10012475283

Intrinsic Bubbles : The Case of Stock Prices

Froot, Kenneth A. - 1989

type of rational bubble that depends exclusively on dividends. We call such bubbles "intrinsic" bubbles because they derive … examples of rational bubbles, intrinsic bubbles provide an empirically plausible account of deviations from present …

Persistent link: https://www.econbiz.de/10012475954