of bubbles in the Brazilian exchange rate. We consider the floating exchange rate period from February 1999 to February … 2002 in order to capture speculative bubbles since in previous years the exchange rate bands avoid the possibility of … Brazil and abroad. The second model uses a result from international trade, the fundamental exchange rate must equilibrate …

Bubbles in asset markets have been documented in numerous experimental studies. However, all experiments in which … bubbles occur pay dividends after each trading day. In this paper we study whether bubbles can occur in markets without … may have inside information, and (2) the option to communicate with other traders. We find that bubbles can indeed occur …

Bubbles are omnipresent in lab experiments with asset markets. Most of these experiments were conducted in environments … smaller bubbles if human traders expect algorithmic traders to be present. …

limited liability investors contribute to asset price bubbles by increasing liquidity provision and that caps fail to tame … bubbles. Overall, giving investors skin in the game fosters financial stability. …