Money is the root of asset bubbles

Yu Awaya, Kohei Iwasaki, Makoto Watanabe

This paper examines how monetary expansion causes asset bubbles. When there is no monetary expansion, a bubbly asset is not created due to a hold-up problem. Monetary expansion increases buyers' money holdings, and then, dealers are willing to buy a worthless asset from sellers, in hopes of selling it to buyers who may not know that it is worthless-a bubble now occurs.

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Year of publication:	January 2024
Authors:	Awaya, Yu ; Iwasaki, Kohei ; Watanabe, Makoto
Publisher:	Munich, Germany : CESifo
Subject:	bubbles \| dealers \| higher-order uncertainty \| money \| Spekulationsblase \| Bubbles \| Börsenkurs \| Share price \| Geldtheorie \| Monetary theory \| Geldpolitik \| Monetary policy

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Extent:	1 Online-Ressource (circa 32 Seiten) Illustrationen
Series:	CESifo working papers. - München : [Verlag nicht ermittelbar], ISSN 2364-1428, ZDB-ID 2065232-X. - Vol. 10923 (2024)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Classification:	D82 - Asymmetric and Private Information ; D83 - Search, Learning, Information and Knowledge ; D84 - Expectations; Speculations ; E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G12 - Asset Pricing ; G14 - Information and Market Efficiency; Event Studies
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014467370