New perspectives on asset price bubbles : theory, evidence and policy

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Title:

Author:

Evanoff, Douglas Darrell, 1951-

ISBN:

9780199844401

9780199844333

Publication Information:

New York : Oxford University Press, 2012.

Physical Description:

xviii, 462 p. : ill. ; 24 cm.

General Note:

Formerly CIP.

Contents:

Machine generated contents note: pt. I INTRODUCTION -- ch. 1 New Perspectives on Asset Price Bubbles: An Overview / A.G. Malliaris -- pt. II BUBBLES: THEORY AND EVIDENCE -- ch. 2 Churning Bubbles / Gary Gorton -- ch. 3 Rethinking Theoretical Models of Bubbles: Reflections Inspired by the Financial Crisis and Allen and Gorton's Paper "Churning Bubbles" / Gadi Barlevy -- pt. III CONSEQUENCES OF BUBBLES BURSTING -- ch. 4 The Japanese Banking Crisis: Where Did It Come From and How Will It End? / Anil Kashyap -- ch. 5 The Impact of the International Financial Crisis on Asia and the Pacific: Highlighting Monetary Policy Challenges from a Negative Asset Price Bubble Perspective / Andrew Filardo -- pt. IV BUBBLES AND MONETARY POLICY -- ch. 6 Monetary Policy and Asset Price Volatility / Mark Gertler -- ch. 7 Monetary Policy and Asset Price Volatility: Should We Refill the Bernanke-Gertler Prescription? / Kenneth N. Kuttner -- pt. V BUBBLES AND MACROPRUDENTIAL REGULATION --

Contents note continued: ch. 8 Towards a Macroprudential Framework for Financial Supervision and Regulation? / Claudio Borio -- ch. 9 Bank Liquidity and Bubbles: Why Central Banks Should Lean against Liquidity / Hassan Naqvi -- pt. VI BUBBLES: BEHAVIORAL EXPLANATIONS -- ch. 10 Overconfidence and Speculative Bubbles / Wei Xiong -- ch. 11 Asset Bubbles: Insights from Behavioral Finance / Werner De Bondt -- pt. VII BUBBLES: KEYNOTE PRESENTATIONS -- ch. 12 An Old Perspective on Asset Price Bubbles Policy / William Poole -- ch. 13 Struggling to Escape from "Assumption 14" / Benjamin M. Friedman -- pt. VIII NEW IDEAS ON ASSET PRICE BUBBLES -- ch. 14 Monetary Policy and Stock Market Booms / Massimo Rostagno -- ch. 15 Leverage and Bubbles: The Need to Manage the Leverage Cycle / John Geanakoplos -- pt. IX ASSET BUBBLES, CENTRAL BANKS AND INVESTMENTS -- ch. 16 Asset Price Bubbles and Central Bank Policies: The Crash of the "Jackson Hole Consensus" / A.G. Malliaris --

Contents note continued: ch. 17 Do Bubbles Lead to Overinvestment? A Revealed Preference Approach / Huntley Schaller.

Subject Term:

Stocks -- Prices.

Securities -- Prices.

Capital market.

Financial crises.

Monetary policy.

Added Author:

Evanoff, Douglas Darrell, 1951-

Kaufman, George G.

Malliaris, A. G.

Copies:

Available:*

Library	Material Type	Item Barcode	Shelf Number	Copy	Status
Searching... 1:IIEMSA	1:GEN-BOOK	33168025583291	338.542 E92N 2012	1	Searching... Unknown

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Summary

This volume critically re-examines the profession's understanding of asset bubbles in light of the global financial crisis of 2007-09. It is well known that bubbles have occurred in the past, with the October 1929 crash as the most demonstrative example. However, the remarkably well-behaved performance of the US economy from 1945 to 2006, and, in particular during the Great Moderation period of 1984 to 2006, assured the economics profession and monetary policymakers that asset bubbles could be effectively managed with little or no real economic impact. The recent financial crisis has now triggered a debate about the emergence of a sequence of repeated bubbles in the Nasdaq market, housing market, credit market and commodity markets. The Greenspan-Bernanke Federal Reserve has followed an asymmetric approach to bubble management. This method advocates no monetary policy action during the bubble formation and growth, but a speedy response with a reduction in market rates when a bubble bursts to reduce the potential loss of output and employment. It was supported by academic research and seemed to work well until September 2008 when the financial system came close to a complete collapse. The realities of the recent financial crisis have intensified theoretical modeling, empirical methodologies, and debate on policy issues surrounding asset price bubbles and their potentially considerable adverse economic impact if poorly managed. Choosing to take a novel approach, the editors of this book have selected five classic papers that represent accepted thinking about asset bubbles prior to the financial crisis. They also include original papers challenging orthodox thinking and presenting new insights. A summary essay by the editors highlights the lessons learned and experiences gained since the crisis.