Recent Economic Bubbles And Possible Implications For Economic Policy

Download Recent Economic Bubbles And Possible Implications For Economic Policy full books in PDF, epub, and Kindle. Read online Recent Economic Bubbles And Possible Implications For Economic Policy ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!

Recent Economic Bubbles and Possible Implications for Economic Policy

Author : Sophia Kuehnlenz
Publisher : GRIN Verlag
ISBN 13 : 3656542465
Total Pages : 66 pages
Book Rating : 4.6/5 (565 download)

DOWNLOAD NOW!

Book Synopsis Recent Economic Bubbles and Possible Implications for Economic Policy by : Sophia Kuehnlenz

Download or read book Recent Economic Bubbles and Possible Implications for Economic Policy written by Sophia Kuehnlenz and published by GRIN Verlag. This book was released on 2013-11-15 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2013 in the subject Business economics - Economic Policy, grade: 1,3, University of Bamberg, course: Volkswirtschaftslehre Dynamische Wirtschaftspolitik, language: English, abstract: Repeatedly bubbles occur during times of “extended investments in infrastructure such as canals or railroads”(Charles P. Kindleberger, “Manias, Panics and Crashes“, p. 10) or around technological inventions that are made available for the general public such as cars, electricity, phone – lines and the internet. They go hand in hand with financial inventions, financial liberalization and excess leverage. Examples are, among many others, the Japanese Asset Price bubble of the late 1980ies and early 1990ies, the Dot-Com bubble 1997–2000, as well as the recent Financial Crisis 2007-2008. Frequently these bubbles are fueled by the overoptimistic outlook not only of the so-called experts or gurus but also by the extremely positive perception of the general public resulting in a “this – time – is - different – feeling”, “new – era – talks” or the “it –won’t happen – to – us – believe”(See for example Shiller, Kindleberger, Reinhart and Rogoff, Galbraith). Most of the time these bubbles are self – feeding processes. Business expansion leads to economic growth and greater income. Public spending increases which leads to the need of expanding production. Credit is needed for investment and during times of a boom it is easily made available. Often new financial instruments come into play as well as the deregulation of financial markets to meet the demand for credit. Businesses can expand further which results in ever increasing income and greater expectations about the future. Creditors become less risk averse and grant loans to individuals or firms that would have not met the necessary requirements before. People feel richer since their wealth is re – classified so that their assets and property are all of the sudden worth more for no realistic reason (renovate a home for example which would account for an increase in value). In combination with low interest rates, more and more investments and purchases are financed through excess leverage creating a vicious cycle of easy credit, money illusion and the adjustment of fundamental values. Great hikes in the markets are considered as a result of the new economy that has been created. Historical levels of the markets and where the level of fundamentals should really be are completely ignored. Currently we can only assess bubbles in retrospective, psychological factors which may help to explain the unexplainable are hardly considered in basic economic models.The only thing that is certain is that bubbles always burst.

Asset Price Bubbles

Author : William Curt Hunter
Publisher : MIT Press
ISBN 13 : 9780262582537
Total Pages : 650 pages
Book Rating : 4.5/5 (825 download)

DOWNLOAD NOW!

Book Synopsis Asset Price Bubbles by : William Curt Hunter

Download or read book Asset Price Bubbles written by William Curt Hunter and published by MIT Press. This book was released on 2005 with total page 650 pages. Available in PDF, EPUB and Kindle. Book excerpt: A study of asset price bubbles and the implications for preventing financial instability.

The Post-Bubble US Economy

Author : P. Arestis
Publisher : Springer
ISBN 13 : 0230501052
Total Pages : 326 pages
Book Rating : 4.2/5 (35 download)

DOWNLOAD NOW!

Book Synopsis The Post-Bubble US Economy by : P. Arestis

Download or read book The Post-Bubble US Economy written by P. Arestis and published by Springer. This book was released on 2004-09-07 with total page 326 pages. Available in PDF, EPUB and Kindle. Book excerpt: The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined.

The Bubble Economy

Author : Robert U. Ayres
Publisher : MIT Press
ISBN 13 : 0262027437
Total Pages : 387 pages
Book Rating : 4.2/5 (62 download)

DOWNLOAD NOW!

Book Synopsis The Bubble Economy by : Robert U. Ayres

Download or read book The Bubble Economy written by Robert U. Ayres and published by MIT Press. This book was released on 2014-05-30 with total page 387 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why the global economy has become increasingly unstable, and how financial “de-carbonization” could break the pattern of bubble-driven wealth destruction. The global economy has become increasingly, perhaps chronically, unstable. Since 2008, we have heard about the housing bubble, subprime mortgages, banks “too big to fail,” financial regulation (or the lack of it), and the European debt crisis. Wall Street has discovered that it is more profitable to make money from other people's money than by investing in the real economy, which has limited access to capital—resulting in slow growth and rising inequality. What we haven't heard much about is the role of natural resources—energy in particular—as drivers of economic growth, or the connection of “global warming” to the economic crisis. In The Bubble Economy, Robert Ayres—an economist and physicist—connects economic instability to the economics of energy. Ayres describes, among other things, the roots of our bubble economy (including the divergent influences of Senator Carter Glass—of the Glass-Steagall Law—and Ayn Rand); the role of energy in the economy, from the “oil shocks” of 1971 and 1981 through the Iraq wars; the early history of bubbles and busts; the end of Glass-Steagall; climate change; and the failures of austerity. Finally, Ayres offers a new approach to trigger economic growth. The rising price of fossil fuels (notwithstanding “fracking”) suggests that renewable energy will become increasingly profitable. Ayres argues that government should redirect private savings and global finance away from home ownership and toward “de-carbonization”—investment in renewables and efficiency. Large-scale investment in sustainability will achieve a trifecta: lowering greenhouse gas emissions, stimulating innovation-based economic growth and employment, and offering long-term investment opportunities that do not depend on risky gambling strategies with derivatives.

The Dot-com Bubble, the Bush Deficits, and the U.S. Current Account

Author : Aart Kraay
Publisher : World Bank Publications
ISBN 13 :
Total Pages : 47 pages
Book Rating : 4./5 ( download)

DOWNLOAD NOW!

Book Synopsis The Dot-com Bubble, the Bush Deficits, and the U.S. Current Account by : Aart Kraay

Download or read book The Dot-com Bubble, the Bush Deficits, and the U.S. Current Account written by Aart Kraay and published by World Bank Publications. This book was released on 2005 with total page 47 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors challenge this view here and develop two alternative interpretations. Both are based on the notion that a bubble (the "dot-com" bubble) has been driving the stock market, but differ in their assumptions about the interactions between this bubble and fiscal policy (the "Bush" deficits). The "benevolent" view holds that a change in investor sentiment led to the collapse of the dot-com bubble and the Bush deficits were a welfare-improving policy response to this event. The "cynical" view holds instead that the Bush deficits led to the collapse of the dot-com bubble as the new administration tried to appropriate rents from foreign investors. The authors discuss the implications of each of these views for the future evolution of the U.S. economy and, in particular, its net foreign asset position."

The Post-Bubble US Economy

Author : P. Arestis
Publisher : Palgrave Macmillan
ISBN 13 : 9781403936493
Total Pages : 301 pages
Book Rating : 4.9/5 (364 download)

DOWNLOAD NOW!

Book Synopsis The Post-Bubble US Economy by : P. Arestis

Download or read book The Post-Bubble US Economy written by P. Arestis and published by Palgrave Macmillan. This book was released on 2004-09-07 with total page 301 pages. Available in PDF, EPUB and Kindle. Book excerpt: The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets. The risks and long-term prospects for the economy and financial markets are also examined.

Financial Market Bubbles and Crashes, Second Edition

Author : Harold L. Vogel
Publisher : Springer
ISBN 13 : 3319715283
Total Pages : 508 pages
Book Rating : 4.3/5 (197 download)

DOWNLOAD NOW!

Book Synopsis Financial Market Bubbles and Crashes, Second Edition by : Harold L. Vogel

Download or read book Financial Market Bubbles and Crashes, Second Edition written by Harold L. Vogel and published by Springer. This book was released on 2018-08-16 with total page 508 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 Crises Explanations, Types, and Implications

Author : Mr.Stijn Claessens
Publisher : International Monetary Fund
ISBN 13 : 1475561008
Total Pages : 66 pages
Book Rating : 4.4/5 (755 download)

DOWNLOAD NOW!

Book Synopsis Financial Crises Explanations, Types, and Implications by : Mr.Stijn Claessens

Download or read book Financial Crises Explanations, Types, and Implications written by Mr.Stijn Claessens and published by International Monetary Fund. This book was released on 2013-01-30 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

False Profits

Author : Dean Baker
Publisher : Berrett-Koehler Publishers
ISBN 13 : 1609944771
Total Pages : 185 pages
Book Rating : 4.6/5 (99 download)

DOWNLOAD NOW!

Book Synopsis False Profits by : Dean Baker

Download or read book False Profits written by Dean Baker and published by Berrett-Koehler Publishers. This book was released on 2011-01-15 with total page 185 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dean Baker, codirector of the Center for Economic and Policy Research recounts the strategies used by the country’s top economic policymakers to conceal their failure to recognize the housing bubble or take steps to rein it in before it grew to unprecedented levels, resulting in the loss of millions of jobs, homes, and the life savings of tens of millions of people. He quashes dire warnings of looming rampant inflation and spiraling debt with solid historic evidence to the contrary—evidence that supports more stimulus, not less. With a dose of optimism, Baker outlines a thoughtful progressive program for rebuilding the economy and reshaping the financial system, including new financial transaction taxes that will reduce or eliminate economic waste while providing stimulus and incentives where and when they are most needed.

Boom and Bust

Author : William Quinn
Publisher : Cambridge University Press
ISBN 13 : 1108369359
Total Pages : 297 pages
Book Rating : 4.1/5 (83 download)

DOWNLOAD NOW!

Book Synopsis Boom and Bust by : William Quinn

Download or read book Boom and Bust written by William Quinn and published by Cambridge University Press. This book was released on 2020-08-06 with total page 297 pages. Available in PDF, EPUB and Kindle. Book excerpt: Why do stock and housing markets sometimes experience amazing booms followed by massive busts and why is this happening more and more frequently? In order to answer these questions, William Quinn and John D. Turner take us on a riveting ride through the history of financial bubbles, visiting, among other places, Paris and London in 1720, Latin America in the 1820s, Melbourne in the 1880s, New York in the 1920s, Tokyo in the 1980s, Silicon Valley in the 1990s and Shanghai in the 2000s. As they do so, they help us understand why bubbles happen, and why some have catastrophic economic, social and political consequences whilst others have actually benefited society. They reveal that bubbles start when investors and speculators react to new technology or political initiatives, showing that our ability to predict future bubbles will ultimately come down to being able to predict these sparks.

The Post ‘Great Recession’ US Economy

Author : P. Arestis
Publisher : Palgrave Macmillan
ISBN 13 : 9780230229075
Total Pages : 0 pages
Book Rating : 4.2/5 (29 download)

DOWNLOAD NOW!

Book Synopsis The Post ‘Great Recession’ US Economy by : P. Arestis

Download or read book The Post ‘Great Recession’ US Economy written by P. Arestis and published by Palgrave Macmillan. This book was released on 2010-05-13 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The US is slowly recovering from the aftermath of the burst of the 'new economy' bubble - which was one of the worst in monetary history. In this updated edition, Philip Arestis and Elias Karakitsos examine the causes and consequences of the burst of the 'new economy' bubble and investigate the impact on financial markets.

Failure by Design

Author : Josh Bivens
Publisher : Cornell University Press
ISBN 13 : 0801461138
Total Pages : 121 pages
Book Rating : 4.8/5 (14 download)

DOWNLOAD NOW!

Book Synopsis Failure by Design by : Josh Bivens

Download or read book Failure by Design written by Josh Bivens and published by Cornell University Press. This book was released on 2011-02-15 with total page 121 pages. Available in PDF, EPUB and Kindle. Book excerpt: In Failure by Design, the Economic Policy Institute’s Josh Bivens takes a step back from the acclaimed State of Working America series, building on its wealth of data to relate a compelling narrative of the U.S. economy’s struggle to emerge from the Great Recession of 2008. Bivens explains the causes and impact on working Americans of the most catastrophic economic policy failure since the 1920s. As outlined clearly here, economic growth since the late 1970s has been slow and inequitably distributed, largely as a result of poor policy choices. These choices only got worse in the 2000s, leading to an anemic economic expansion. What growth we did see in the economy was fueled by staggering increases in private-sector debt and a housing bubble that artificially inflated wealth by trillions of dollars. As had been predicted, the bursting of the housing bubble had disastrous consequences for the broader economy, spurring a financial crisis and a rise in joblessness that dwarfed those resulting from any recession since the Great Depression. The fallout from the Great Recession makes it near certain that there will be yet another lost decade of income growth for typical families, whose incomes had not been boosted by the previous decade’s sluggish and localized economic expansion. In its broad narrative of how the economy has failed to deliver for most Americans over much of the past three decades, Failure by Design also offers compelling graphic evidence on jobs, incomes, wages, and other measures of economic well-being most relevant to low- and middle-income workers. Josh Bivens tracks these trends carefully, giving a lesson in economic history that is readable yet rigorous in its analysis. Intended as both a stand-alone volume and a companion to the new State of Working America website that presents all of the data underlying this cogent analysis, Failure by Design will become required reading as a road map to the economic problems that confront working Americans.

Optimal Macroprudential Policy and Asset Price Bubbles

Author : Nina Biljanovska
Publisher : International Monetary Fund
ISBN 13 : 1513512668
Total Pages : 51 pages
Book Rating : 4.5/5 (135 download)

DOWNLOAD NOW!

Book Synopsis Optimal Macroprudential Policy and Asset Price Bubbles by : Nina Biljanovska

Download or read book Optimal Macroprudential Policy and Asset Price Bubbles written by Nina Biljanovska and published by International Monetary Fund. This book was released on 2019-08-30 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: An asset bubble relaxes collateral constraints and increases borrowing by credit-constrained agents. At the same time, as the bubble deflates when constraints start binding, it amplifies downturns. We show analytically and quantitatively that the macroprudential policy should optimally respond to building asset price bubbles non-monotonically depending on the underlying level of indebtedness. If the level of debt is moderate, policy should accommodate the bubble to reduce the incidence of a binding collateral constraint. If debt is elevated, policy should lean against the bubble more aggressively to mitigate the pecuniary externalities from a deflating bubble when constraints bind.

Towards a Better Global Economy

Author : Franklin Allen
Publisher : OUP Oxford
ISBN 13 : 0191035130
Total Pages : 576 pages
Book Rating : 4.1/5 (91 download)

DOWNLOAD NOW!

Book Synopsis Towards a Better Global Economy by : Franklin Allen

Download or read book Towards a Better Global Economy written by Franklin Allen and published by OUP Oxford. This book was released on 2014-09-04 with total page 576 pages. Available in PDF, EPUB and Kindle. Book excerpt: Substantial progress in the fight against extreme poverty was made in the last two decades. But the slowdown in global economic growth and significant increases in income inequality in many developed and developing countries raise serious concerns about the continuation of this trend into the 21st century. The time has come to seriously think about how improvements in official global governance, coupled with and reinforced by rising activism of 'global citizens' can lead to welfare-enhancing and more equitable results for global citizens through better national and international policies. This book examines the factors that are most likely to facilitate the process of beneficial economic growth in low-, middle-, and high-income countries. It examines past, present, and future economic growth; demographic changes; the hyperglobalization of trade; the effect of finance on growth; climate change and resource depletion; and the sense of global citizenship and the need for global governance in order to draw longer-term implications, identify policy options for improving the lives of average citizens around the world, and make the case for the need to confront new challenges with truly global policy responses. The book documents how demographic changes, convergence, and competition are likely to bring about massive shifts in the sectoral and geographical composition of global output and employment, as the center of gravity of the global economy moves toward Asia and emerging economies elsewhere. It shows that the legacies of the 2008-09 crisis-high unemployment levels, massive excess capacities, and high debt levels-are likely to reduce the standard of living of millions of people in many countries over a long period of adjustment and that fluctuations in international trade, financial markets, and commodity prices, as well as the tendency of institutions at both the national and international level to favor the interests of the better-off and more powerful pose substantial risks for citizens of all countries. The chapters and their policy implications are intended to stimulate public interest and facilitate the exchange of ideas and policy dialogue.

Monetary Policy and the Housing Bubble

Author : Jane Dokko
Publisher :
ISBN 13 :
Total Pages : 76 pages
Book Rating : 4.3/5 (121 download)

DOWNLOAD NOW!

Book Synopsis Monetary Policy and the Housing Bubble by : Jane Dokko

Download or read book Monetary Policy and the Housing Bubble written by Jane Dokko and published by . This book was released on 2009 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Asset Bubbles

Author : Bradley Jones
Publisher : International Monetary Fund
ISBN 13 : 147557620X
Total Pages : 59 pages
Book Rating : 4.4/5 (755 download)

DOWNLOAD NOW!

Book Synopsis Asset Bubbles by : Bradley Jones

Download or read book Asset Bubbles written by Bradley Jones and published by International Monetary Fund. This book was released on 2015-02-11 with total page 59 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 short-term nature of the asset owner—manager relationship, and the momentum bias inherent in financial benchmarks, I argue that the business risk of asset managers acts as strong motivation for institutional herding and ‘rational bubble-riding.’ Two key policy implications follow. First, procyclicality could intensify as institutional assets under management continue to grow. Second, remedial policies should extend beyond the standard suite of macroprudential and monetary measures to include time-invariant policies targeted at the cause (not just symptom) of the problem. Prominent among these should be reforms addressing principal-agent contract design and the implementation of financial benchmarks.

Stock Markets, Speculative Bubbles and Economic Growth

Author : Mathias Binswanger
Publisher : Edward Elgar Publishing
ISBN 13 :
Total Pages : 392 pages
Book Rating : 4.F/5 ( download)

DOWNLOAD NOW!

Book Synopsis Stock Markets, Speculative Bubbles and Economic Growth by : Mathias Binswanger

Download or read book Stock Markets, Speculative Bubbles and Economic Growth written by Mathias Binswanger and published by Edward Elgar Publishing. This book was released on 1999 with total page 392 pages. Available in PDF, EPUB and Kindle. Book excerpt: Examining the role of speculative bubbles in the stock market, this text argues that, provided they are sustainable, bubbles may have a positive effect on the market. They may provide additional investment opportunities with the potential to increase aggregate profits and improve economic welfare.