This paper provides a theoretical explanation of the relationship between interest rates and stock prices in the ‘new economy’ using the investment opportunities approach for valuation of growth shares. First, it explains the creation of the bubble and the major reason for its bursting....

We respond to the call for future research on degrowth and specifically analyze the implications of economic degrowth on the monetary and financial system. We argue that any early indications of degrowth would cause the stock market to crash, which would trigger further deleveraging (contagion)...

This study investigates which Asia Pacific markets were driven by the US stock market and which by the Japanese stock market during the 1995-97 period, right before the 1997 Asia Pacific financial crisis. The results show that stock markets of Hong Kong, Indonesia and Malaysia shared a long-run...

This article analyzes the CFTC's Disaggregated Commitments of Traders (DCOT) Report to get more insights into the behavior of different traders during the 2008 oil bubble. The analysis shows that: (1) the Money Manager category perfectly played the oil bubble, got in early and started selling...

We argue that "the 2008 Oil Bubble" was directly and indirectly created by the Federal Reserve in response to deflationary risks that resurfaced after the housing bubble burst and the resulting credit crisis of 2008. Deflationary risks first appeared after the dot.com bubble burst in 2000 and...

This article examines how the interaction of different participants in the crude oil futures markets affects the crude oil price efficiency. Normally, the commercial market participants, such as oil producers and oil consumers, act as arbitrageurs and ensure that the price of crude oil remains...