straightforward channels. The result is a macroeconomic model that allows for the endogenous development of stock price bubbles. Even …

Using an agent-based model (ABM) with fundamentalists and chartists, prone to develop bubbles and crashes, we … demonstrate the usefulness of direct market intervention by a policy maker, documenting strong performance in preventing bubbles … bubbles by forming an expectation of the future return of the risky asset in the form of an exponential moving average of the …

We analyse the consequences of predicting and exploiting financial bubbles in an agent-based model, with a risky and a … their ability to diagnose financial bubbles from the endogenous price history to determine optimal entry and exit trading … inefficiencies and stabilise the market by arbitraging the bubbles. At larger proportions, DR tend to destabilise prices, as their …

This paper studies whether and how the central bank should prick asset price bubbles, if the effect of interest rate … policy on bubbles can significantly vary across periods. For this purpose, I first construct a financial accelerator model … with an agent-based financial market that can endogenously generate bubbles and account for their impact on the real sector …

is able to account for the development of endogenous bubbles and crashes. We distinguish three different regimes …’ opinions are idiosyncratic and no bubbles emerge. Around the critical value of the O(n) vector model, cross sectionally … asynchronous bubbles emerge. Above the critical value, small random price fluctuations may be amplified by noise traders herding …

-based financial market model ; leverage ; macroprudential regulation ; financial stability ; asset price bubbles ; systemic risk …