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into an economy, with potential to create asset bubbles and inflation, or poor economy growth and deflation. Specifically … emerging markets such as India and Brazil, and crave for the local currency and its use drives asset bubbles and inflation …
Persistent link: https://www.econbiz.de/10013238090
Speculative economic, financial, and cryptocurrency bubbles are not arcane anymore; nonetheless, they are still … misunderstood. For this exact reason, they continue to form even centuries after the famous first speculative bubbles of 17th and 18 …th centuries. Bubbles do not form instantaneously; quite the opposite, they progress through several distinct stages that …
Persistent link: https://www.econbiz.de/10013227956
Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in bank balance sheets and increase the dependence on central bank liquidity. This paper argues for what I term “Circular Monetary Economics”, an approach to monetary policy that seeks to...
Persistent link: https://www.econbiz.de/10012825201
Many economists argue that financial market development plays a role in fostering economic development. However, the question of how to extend financial access to the unbanked in underdeveloped countries has long remained a puzzle in the development finance literature. Much of the debate thus...
Persistent link: https://www.econbiz.de/10013012315
We assess econometrically the impact of asset shortages on economic growth, asset bubbles, the probability of a crisis … asset price bubbles. Moreover, asset shortages can also explain the current account positions of EMs. The findings suggest …
Persistent link: https://www.econbiz.de/10013101522
-based financial market model ; leverage ; macroprudential regulation ; financial stability ; asset price bubbles ; systemic risk …
Persistent link: https://www.econbiz.de/10009384917
which is mainly driven by investor sentiment, becoming a potential source of financial bubbles and instabilities. In this …
Persistent link: https://www.econbiz.de/10012931458
The paper examines three aspects of a financial crisis of domestic origin. The first section studies the evolution of a debt-financed consumption boom supported by rising asset prices, leading to a credit crunch and fluctuations in the real economy, and, ultimately, to debt deflation. The next...
Persistent link: https://www.econbiz.de/10003974885
The paper examines three aspects of a financial crisis of domestic origin. The first section studies the evolution of a debt-financed consumption boom supported by rising asset prices, leading to a credit crunch and fluctuations in the real economy, and, ultimately, to debt deflation. The next...
Persistent link: https://www.econbiz.de/10013143561
Holdings of money and illiquid assets are likely to be determined jointly. Therefore, frictions that give rise to a need for money may affect capital formation, resulting in either too much or too little investment. Existing models of money and capital however tend to overlook that both types of...
Persistent link: https://www.econbiz.de/10012894978