This lecture outlines an asymmetric information theory of financial instability which describes the fundamental forces … demonstrate that although international capital movements and financial volatility can play a role in destabilizing the economy is …

In this paper we study how volatility in monetary policy affects economic performance in the presence of endogenously … would be efficient. The equilibria that we find, with volatility and asymmetry of information, are inefficient for two …

offer two contributions. First, we derive upper bounds on labor market volatility that apply if the model of wage … tight: rent rigidity generates no more than a third of observed volatility, an outcome that is closer to Nash bargaining …

price volatility. These results shed light on the informational role of index options and suggest that the theoretical …

Analyzing a large sample of U.S. firms, we show that the asymmetry of stock return volatility is positively related to …. Furthermore, the effect of attention is strongest among stocks with low institutional ownership and high idiosyncratic volatility …. Our results are robust to the traditional "leverage effect'' explanation of volatility asymmetry. The findings relate to …