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Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises
Lagos, Ricardo - 2014
anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity … prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to …. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on …
Persistent link: https://www.econbiz.de/10013054305
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Would a Stricter Fed Policy and Financial Regulation Have Averted the Financial Crisis?
Gokhale, Jagadeesh - 2009
Many commentators have argued that if the Federal Reserve had followed a stricter monetary policy earlier this decade when the housing bubble was forming, and if Congress had not deregulated banking but had imposed tighter financial standards, the housing boom and bust - and the subsequent...
Persistent link: https://www.econbiz.de/10013155688
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Illiquid financial products and distribution policies : new insights
Polato, Maurizio; Floreani, Josanco - In: Journal of applied finance & banking 1 (2011) 2, pp. 155-172
investors lack the basic tools for evaluating more complex structures and liquidity costs; this, in turn, leaves room for …
Persistent link: https://www.econbiz.de/10009536158
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Cash-in-the-Market Pricing in a Model with Money and Over-the-Counter Financial Markets
Mattesini, Fabrizio - 2014
-the-counter, the price that the entrepreneur receives for the assets that he sells depends on the amount of liquidity (cash) that is in … the OTC market: Greater levels of liquidity lead to higher asset prices. Since asset prices are linked to liquidity, they …
Persistent link: https://www.econbiz.de/10013061767
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The domino effect of silicon valley Bank's bankruptcy and the role of FED's monetary policy
Erer, Elif; Erer, Deniz - In: Borsa Istanbul Review 24 (2024) 3, pp. 573-591
This paper examines the spillover effects of bankruptcy by important tech industry banks-Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank-on the top 10 institutions in the MSCI Bank Index and the role that monetary policy by the US Federal Reserve (the Fed) played in this...
Persistent link: https://www.econbiz.de/10014635351
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Asset Price Bubbles and Central Bank Policies : The Crash of the 'Jackson Hole Consensus'
Malliaris, A. (Tassos) G. - 2011
This paper reexamines the main arguments of whether or not monetary policy should respond to asset bubbles. The question of how the central bank should respond to an asset bubble can be reformulated in two ways. First, how does the central bank respond while an asset bubble is growing, and...
Persistent link: https://www.econbiz.de/10013119617
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The outside option channel of central bank asset purchase programs : a tale of two crises
Lee, Changhyun - 2024
I suggest a new channel through which central bank asset purchase programs could have effects on asset prices: The outside option channel. After the global financial crisis, central banks have widened the variety of assets they can purchase. Secondary markets for the majority of the newly...
Persistent link: https://www.econbiz.de/10015069555
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Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-Fulfilling Liquidity Crises
Lagos, Ricardo - 2015
anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity … prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to …. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on …
Persistent link: https://www.econbiz.de/10013015987
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Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises
Lagos, Ricardo - 2015
anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity … prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to …. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on …
Persistent link: https://www.econbiz.de/10012457141
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Optimal Macroprudential Policy and Asset Price Bubbles
Biljanovska, Nina - 2019
An asset bubble relaxes collateral constraints and increases borrowing by credit-constrained agents. At the same time, as the bubble deflates when constraints start binding, it amplifies downturns. We show analytically and quantitatively that the macroprudential policy should optimally respond...
Persistent link: https://www.econbiz.de/10012862442