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This paper models the links between financial fragility, asset markets and monetary policy. It is shown, that central bank's concern about the cost of financial disruption generates an asymmetric response, thus contributing to the creation of an asset price bubble in an economy with a highly...
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rents; however, there is limited evidence regarding the impact of innovation on risk. We shed new light on how firms …' involvement in innovation activities impacts their volatility, particularly their idiosyncratic volatility. In this paper, we … empirically examine the effect of innovation on idiosyncratic volatility. To do so, we empirically examine the impact of …
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