This paper investigates the effect of monetary policy on stock market bubbles and trading behavior in experimental … observe a strong impact of our interest rate policy on liquidity in the stock market but only a small impact on bubbles …. However, we find that announcing the possibility of reserve requirements significantly reduces bubbles even when such …

of restrictive monetary policy shocks coincides with the phase of the business cycle in which bubbles arise …

"conventional" view on the effects of monetary policy on bubbles, as well as with the predictions of bubbleless models. We also …