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 …

business cycles and stock price bubbles. We show that market sentiments exert important influence on the macroeconomy. They …

business cycles and stock price bubbles. We show that market sentiments exert important influence on the macroeconomy. They …