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We experimentally investigate how price expectations are formed in a large asset market where subjects' only task is to … forecast the future price of a risky asset. The realized prices depend on these expectations. We observe small (6 participants …
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imply learning from realization of states and inconsistent with the assumption of full information rational expectations …This paper analyzes what assumptions on formation of expectations are consistent with Minsky's Financial Instability … crisis recedes into the past. We show that the hypothesis is consistent with assumptions on formation of expectations that …
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This paper arms central bank policy makers with ways to think about interactions between financial stability and monetary policy. We frame the issue of whether to integrate financial stability into monetary policy operating rules by appealing to the observation that in actual economies financial...
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