Economic Uncertainty, Instabilities And Asset Bubbles: Selected Essays - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Economic Uncertainty, Instabilities And Asset Bubbles: Selected Essays write by Anastasios G Malliaris. This book was released on 2005-10-03. Economic Uncertainty, Instabilities And Asset Bubbles: Selected Essays available in PDF, EPUB and Kindle. The compendium of papers in this volume focuses on aspects of economic uncertainty, financial instabilities and asset bubbles.Economic uncertainty is modeled in continuous time using the mathematical techniques of stochastic calculus. A detailed treatment of important topics is provided, including the existence and uniqueness of asymptotic economic growth, the modeling of inflation and interest rates, the decomposition of inflation and its volatility, and the extension of the quantity theory of money to allow for randomness.The reader is also introduced to the methods of chaotic dynamics, and this methodology is applied to asset pricing, the European equity markets, and the multi-fractality in foreign currency markets.Since the techniques of stochastic calculus and chaotic dynamics do not readily accommodate the presence of stochastic bubbles, several papers discuss in depth the presence of financial bubbles in asset prices, and econometric work is performed to link such bubbles to monetary policy.Finally, since bubbles often burst rather than deflate slowly, the last section of the book studies the crash of October 1987 as well as other crashes of national equity markets due to the Persian gulf crisis.
Financial Market Bubbles and Crashes, Second Edition
Financial Market Bubbles and Crashes, Second Edition - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Market Bubbles and Crashes, Second Edition write by Harold L. Vogel. This book was released on 2018-08-16. Financial Market Bubbles and Crashes, Second Edition available in PDF, EPUB and Kindle. Economists broadly define financial asset price bubbles as episodes in which prices rise with notable rapidity and depart from historically established asset valuation multiples and relationships. Financial economists have for decades attempted to study and interpret bubbles through the prisms of rational expectations, efficient markets, and equilibrium, arbitrage, and capital asset pricing models, but they have not made much if any progress toward a consistent and reliable theory that explains how and why bubbles (and crashes) evolve and can also be defined, measured, and compared. This book develops a new and different approach that is based on the central notion that bubbles and crashes reflect urgent short-side rationing, which means that, as such extreme conditions unfold, considerations of quantities owned or not owned begin to displace considerations of price.
Financial Market Bubbles and Crashes
Financial Market Bubbles and Crashes - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Financial Market Bubbles and Crashes write by Harold L. Vogel. This book was released on 2009-12-14. Financial Market Bubbles and Crashes available in PDF, EPUB and Kindle. Despite the thousands of articles and the millions of times that the word 'bubble' has been used in the business press, there still does not appear to be a cohesive theory or persuasive empirical approach with which to study 'bubble' and 'crash' conditions. This book presents a plausible and accessible descriptive theory and empirical approach to the analysis of such financial market conditions. It advances such a framework through application of standard econometric methods to its central idea, which is that financial bubbles reflect urgent short side rationed demand. From this basic idea, an elasticity of variance concept is developed. It is further shown that a behavioral risk premium can probably be measured and related to the standard equity risk premium models in a way that is consistent with conventional theory.
Uncertainty, Expectations, and Financial Instability
Uncertainty, Expectations, and Financial Instability - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Uncertainty, Expectations, and Financial Instability write by Eric Barthalon. This book was released on 2014-11-18. Uncertainty, Expectations, and Financial Instability available in PDF, EPUB and Kindle. Eric Barthalon applies the neglected theory of psychological time and memory decay of Nobel Prize–winning economist Maurice Allais (1911–2010) to model investors' psychology in the present context of recurrent financial crises. Shaped by the behavior of the demand for money during episodes of hyperinflation, Allais's theory suggests economic agents perceive the flow of clocks' time and forget the past at a context-dependent pace: rapidly in the presence of persistent and accelerating inflation and slowly in the event of the opposite situation. Barthalon recasts Allais's work as a general theory of "expectations" under uncertainty, narrowing the gap between economic theory and investors' behavior. Barthalon extends Allais's theory to the field of financial instability, demonstrating its relevance to nominal interest rates in a variety of empirical scenarios and the positive nonlinear feedback that exists between asset price inflation and the demand for risky assets. Reviewing the works of the leading protagonists in the expectations controversy, Barthalon exposes the limitations of adaptive and rational expectations models and, by means of the perceived risk of loss, calls attention to the speculative bubbles that lacked the positive displacement discussed in Kindleberger's model of financial crises. He ultimately extrapolates Allaisian theory into a pragmatic approach to investor behavior and the natural instability of financial markets. He concludes with the policy implications for governments and regulators. Balanced and coherent, this book will be invaluable to researchers working in macreconomics, financial economics, behavioral finance, decision theory, and the history of economic thought.
Central Banking, Asset Prices and Financial Fragility
Central Banking, Asset Prices and Financial Fragility - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Central Banking, Asset Prices and Financial Fragility write by Éric Tymoigne. This book was released on 2008-11-21. Central Banking, Asset Prices and Financial Fragility available in PDF, EPUB and Kindle. In this book Tymoigne argues that financial stability should be the sole goal of central banks and suggests an alternative to the inflation targeting framework showing how interest-rate policy can help to solve some of the problems faced by central bankers.
