Caballero, Ricardo J.; Simsek, Alp - 2022
). Overshooting leads to a temporary disconnect between the performance of financial markets and the real economy, but it accelerates … the recovery. When there is a lower-bound constraint on the discount rate, overshooting becomes a concave and non …-19 recovery, the policy-induced overshooting was large−sufficient to explain the high levels of stock and house prices in …
