Beckers, Benjamin; Bernoth, Kerstin - 2016
This paper investigates whether central banks can attenuate excessive mispricing in stocks as suggested by the … component, a risk premium, and a mispricing component. We argue that mispricing can arise for two reasons: (i) from false … policy shock is ambiguous in both the short- and long-run, and depends on the nature of the mispricing. Subsequently, we …