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New Perspectives on Asset Price Bubbles: Theory, Evidence and Policy
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Description
This book critically re-examines the profession's understanding of asset price bubbles in light of the global financial crisis of 2007–2009. 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 U.S. economy from 1945–2006, and, in particular during the Great Moderation period of 1984–2006, 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 realities of the crisis have intensified theoretical modeling, empirical methodologies, and debate on policy issues surrounding asset price bubbles and their potentially adverse economic impact if poorly managed. Taking a novel approach, this book presents classic work that represents accepted thinking about asset bubbles prior to the financial crisis. It also includes original chapters challenging orthodox thinking and presenting new insights. A summary chapter highlights the lessons learned and experiences gained since the crisis.
ISBN
199844402
Publication Date
3-1-2012
Publisher
Oxford University Press
City
New York, NY
Keywords
asset price bubbles, economy, Great Moderation period, monetary policymakers
Disciplines
Economics | Finance
Recommended Citation
Kaufman, George, "New Perspectives on Asset Price Bubbles: Theory, Evidence and Policy" (2012). Faculty Books. 68.
https://ecommons.luc.edu/facultybooks/68
