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relationship to bubbles. My conclusion is that mistaken U.S. monetary policy, usually related to the Fed's indifference to the … value of the dollar, has repeatedly caused harmful asset bubbles in the United States and abroad. Policy is again at risk … “quantitative easing”). Regulatory policy has often been ineffective at identifying or addressing asset bubbles, especially those …
Persistent link: https://www.econbiz.de/10013083286
bubbles. For this we posit an overlapping generation model where productivity and credit supply are subject to random shocks …. We find that when real interest rates are lower than the rate of growth, credit financed bubbles may be welfare improving …
Persistent link: https://www.econbiz.de/10012846053
optimization strategy hyper-inflates and extends the life of financial bubbles. The finance sector is most criminogenic because of … further optimizes accounting control fraud because the frauds can hide losses by refinancing. Mega bubbles produce financial …
Persistent link: https://www.econbiz.de/10013144767
the working of the instruments is demonstrated and analyzed. It is shown that in theory both instruments are able to … suitable for the task of tackling asset price bubbles. -- Monetary Policy ; Banking Regulation ; Asset Prices ; Bubbles …
Persistent link: https://www.econbiz.de/10009550219
This paper explores how different credit market and banking regulations affect business fluctuations. Capital adequacy and reserve requirements are analysed for their effect on the risk of severe downturns. We develop an agent-based macroeconomic model in which financial contagion is transmitted...
Persistent link: https://www.econbiz.de/10013021276
We examine, conditional on structural shocks, the macroeconomic performance of different countercyclical capital buffer (CCyB) rules in small open economy estimated medium scale DSGE. We find that rules based on the credit gap create a trade-off between the stabilization of fluctuations...
Persistent link: https://www.econbiz.de/10011820128
This study analyzes the trends in the financial sector over the past 30 years, and argues that unsupervised financial innovations and lenient government regulation are at the root of the current financial crisis and recession. Combined with a long period of economic expansion during which...
Persistent link: https://www.econbiz.de/10013156908
This paper attempts to define, construct a policy framework, and analyze interactions with monetary policy of macroprudential policy. The available pieces of evidence suggest that the effects of the LTV and DTI regulations for financial stability are rather unclear in Korea.It also shows that...
Persistent link: https://www.econbiz.de/10012994602
Persistent link: https://www.econbiz.de/10012905124
This study presents an analysis of the impact of asset price bubbles on the markets for cryptocurrencies and con …-siders the standard risk management measure Value-at-Risk (“VaR”). We apply the theory of local martingales, present a styled … model of asset price bubbles in continuous time and perform a simulation experiment featuring one- and two …
Persistent link: https://www.econbiz.de/10014351326