This paper suggests that non-fundamental component in asset prices is one of the drivers of financial and credit cycle. Presented model builds on the financial accelerator literature by including a stock market where limitedly-liable investors trade stocks of productive firms with stochastic...

This article analyzes the main issues for monetary policy in new EU member states before their euro adoption. These are typically rooted in the challenge of fulfilling concurrently of the Maastricht inflation and exchange rate criterion, as these countries are experiencing equilibrium real...

This paper suggests that non-fundamental component in asset prices is one of the drivers of the financial and credit cycle. The presented model builds on the financial accelerator literature by including a stock market where limitedly-liable investors trade stocks of productive firms with...