This paper addresses the question whether public information destabilises the economy in the context of signals of different nature. We present an experiment on the speculative attack game of Morris and Shin (1998). Our objective is double: (i) evaluating whether public information destabilises...

We study the implications of conformism among analysts in a CARA Gaussian model of the market for a risky asset, where a trader's information is a message sent by an analyst.  Conformism increases the weight of the public information in the messages, decreasing their informativeness.  More...