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Models of Currency Crises with Self-Fulfilling Features

Obstfeld, Maurice - 2000

The discomfort a government suffers from speculation against its currency determines the strategic incentives of …

Persistent link: https://www.econbiz.de/10014158713

Arrested Development : Theory and Evidence of Supply-Side Speculation in the Housing Market

Nathanson, Charles G. - 2017

This paper studies the role of disagreement in amplifying housing cycles. Speculation is easier in the land market than … land both facilitates construction and intensifies the speculation that causes booms and busts in house prices. This …

Persistent link: https://www.econbiz.de/10012965946

Supply and Shorting in Speculative Markets

Nutz, Marcel - 2017

the equilibrium price exceeds the price of the asset in a static buy-and-hold model where speculation is ruled out. Our …

Persistent link: https://www.econbiz.de/10012948441

A Risk-Centric Model of Demand Recessions and Speculation

Caballero, Ricardo J. - 2017

interactions between asset prices, financial speculation, and macro- economic outcomes when output is determined by aggregate … heterogeneous asset valuations) matter because they induce investors to speculate. This speculation exacerbates the crash by … beliefs. Macroprudential policy that restricts speculation in the boom can Pareto improve welfare by increasing asset prices …

Persistent link: https://www.econbiz.de/10012951344

Leverage-Induced Fire Sales and Stock Market Crashes

Bian, Jiangze - 2018

We provide direct evidence of leverage-induced fire sales contributing to a market crash using account-level trading data for brokerage- and shadow-financed margin accounts during the Chinese stock market crash of 2015. Margin investors heavily sell their holdings when their account-level...

Persistent link: https://www.econbiz.de/10012911095

Credit Supply and Housing Speculation

Mian, Atif - 2018

Speculation is a critical channel through which credit supply expansion affects the housing cycle. The surge in private …

Persistent link: https://www.econbiz.de/10012914707

Rational Speculative Bubbles in an Exchange Rate Target Zone

Buiter, Willem H.; Pesenti, Paolo A. - 2021

The recent theory of exchange rate dynamics within a target zone holds that exchange rates under a currency bard are less responsive to fundamental shocks than exchange rates under a free float, provided that the intervention rules of the Central Bank(s) are common knowledge. These results are...

Persistent link: https://www.econbiz.de/10013222244

Heterogeneous Expectations and Bond Markets

Yan, Hongjun; Xiong, Wei - 2021

This paper presents a dynamic equilibrium model of bond markets, in which two groups of agents hold heterogeneous expectations about future economic conditions. Our model shows that heterogeneous expectations can not only lead to speculative trading, but can also help resolve several challenges...

Persistent link: https://www.econbiz.de/10013225044

Speculative Attacks on Pegged Exchange Rates : An Empirical Exploration with Special Reference to the European Monetary System

Eichengreen, Barry; Rose, Andrew; Wyplosz, Charles - 2021

This paper presents an empirical analysis of speculative attacks on pegged exchange rates in 22 countries between 1967 and 1992. We define speculative attacks or crises as large movements in exchange rates, interest rates, and international reserves. We develop stylized facts concerning the...

Persistent link: https://www.econbiz.de/10013227044

Speculative Behavior of Institutional Investors

Pound, John; Shiller, Robert J. - 2021

A survey compared speculative behavior in two groups of institutional investors. The "experimental" group held stocks that had shown extraordinary price increases over the preceding year that also had high price earnings ratios. The control group held randomly selected stocks. In Shiller and...

Persistent link: https://www.econbiz.de/10013227905