Asset price inflation presents central banks with a puzzle. I examine the case of Germany, 1925-7, when the Reichsbank …

followed ended the only stock market boom during Germany’s relative stabilization 1924-28. This paper examines the factors that … effects. Investment suffered, helping to tip Germany into depression. …

Der Beitrag beleuchtet im Rahmen einer Event-Studie für Deutschland, Großbritannien, Japan und die Vereinigten Staaten …

Our paper uses simulation methods to examine the size and power of regime-switching tests for bubbles. We find that … tests conservative; they understate the significance of the evidence of bubbles. Despite this, the tests display … considerable power to detect bubbles even when using the conservative asymptotic critical values. We also find that the frequency …

if there are "bubbles", they may not distort real behaviour if managers base investment decisions on fundamentals. Using … decisions on fundamentals despite stock market bubbles. Three types of collateral evidence reinforce this interpretation. We …

Our paper uses simulation methods to examine the size and power of regime-switching tests for bubbles. We find that … tests conservative; they understate the significance of the evidence of bubbles. Despite this, the tests display … considerable power to detect bubbles even when using the conservative asymptotic critical values. We also find that the frequency …

of a wider research entitled “BUBBLES AND INSTABILITY”, which is intended to try and clarify the reasons why the bubbles …, especially financial bubbles, are a current issue and one of the main aspects to be considered within these phenomena. The first … preview of this current document was published in the same collection: Bubbles and Instability: The State of the Art. Working …