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type of rational bubble that depends exclusively on dividends. We call such bubbles quot;intrinsicquot; bubbles because … most popular examples of rational bubbles, intrinsic bubbles provide an empirically plausible account of deviations from …
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This paper examines the economic environments in which past U.S. stock market booms occurred as a first step toward understanding how asset price booms come about and whether monetary policy should be used to defuse booms. We identify several episodes of sustained rapid rise in equity prices in...
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"conventional" view on the effects of monetary policy on bubbles, as well as with the predictions of bubbleless models. We also …
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This paper surveys the twentieth century booms and crashes in the American stock market, focusing on a comparison of the two most similar events in the 1920s and 1990s. In both booms, claims were made that they were the consequence a %u201Cnew economy%u201D or %u201Cirrational exuberance.%u201D...
Persistent link: https://www.econbiz.de/10012761669
. The latter is more likely if bubbles develop along the expansionary path. These (rational) bubbles can emerge even when …
Persistent link: https://www.econbiz.de/10012762624
History is important to the study of financial bubbles precisely because they are extremely rare events, but history … can be misleading. The rarity of bubbles in the historical record makes the sample size for inference small. Restricting …%. In simple terms, bubbles are booms that went bad. Not all booms are bad …
Persistent link: https://www.econbiz.de/10013012690