Journal Article
Economic theory and asset bubbles
Abstract: The author summarizes what economic theory tells us about when asset price bubbles can occur and what the welfare implications are from bursting them. In some cases, bursting a bubble may make society worse off by exacerbating the market distortions that give rise to the bubble in the first place.
Keywords: Asset-liability management; Asset pricing;
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Authors
Bibliographic Information
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2007
Volume: 31
Issue: Q III
Pages: 44-59