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of perverse incentives and moral hazard that often gives rise to yet another round of bubbles. The US central bank …'s current premise is that policymakers cannot and should not target asset bubbles. However, the housing story has rendered … untenable the prevailing belief that bubbles are impossible to spot ahead of time. The warning signals were ubiquitous - for …
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In this paper the authors present an agent-based model of a credit network economy. The artificial economy includes different economic agents that interact using simple behavioral rules through various markets, i.e., the consumption goods market, the labor market, the credit market and the...
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This paper investigates the housing and mortgage markets by means of an agent-based macroeconomic model of a credit network economy. A set of computational experiments have been carried out in order to explore the effects of different households’ creditworthiness conditions required by banks...
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Against the background of recent house price increases in several European countries, the OeNB organized a workshop entitled "Are House Prices Endangering Financial Stability? If So, How Can We Counteract This?" It was held in Vienna on October 9 and 10, 2014. The workshop contributions...
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