Asset Bubbles
In distilling a vast literature spanning the rational- irrational divide, this paper offers reflections on why asset bubbles continue to threaten economic stability despite financial markets becoming more informationally-efficient, more complete, and more heavily influenced by sophisticated (i.e. pr...
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| Format: | Book |
| Language: | English |
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Washington :
International Monetary Fund,
2015
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| Series: | IMF Working Papers
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| Subjects: |
| Summary: | In distilling a vast literature spanning the rational- irrational divide, this paper offers reflections on why asset bubbles continue to threaten economic stability despite financial markets becoming more informationally-efficient, more complete, and more heavily influenced by sophisticated (i.e. presumably rational) institutional investors. Candidate explanations for bubble persistence-such as limits to learning, frictional limits to arbitrage, and behavioral errors-seem unsatisfactory as they are inconsistent with the aforementioned trends impacting global capital markets. In lieu of the sho |
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| Physical Description: | 1 online resource (60 pages) |
| ISBN: | 149830415X 9781498304153 |