Economics at your fingertips  

Literatures About Asset Price Bubbles

Babaei Semirumi ()
Additional contact information
Babaei Semirumi: Payam Noor University (PNU), Iran

Authors registered in the RePEc Author Service: Mohammad Reza Babaei Semiromi ()

Annals - Economic and Administrative Series -, 2012, vol. 6, issue 1, 35-55

Abstract: A bubble is the difference between an asset's fundamental value and its market price.. Some researchers have defended the idea that it is possible that asset price bubbles moderate the effects of financial market frictions, like credit constraints and improve the allocation of investment, despite the occasional busts. Since asset prices affect the real allocation of an economy, it is important to understand the circumstances under which these prices can deviate from their fundamental. Strong regulatory and supervisory institutions are always the best line of defense. In this context, maintaining the credibility and reputation of the central bank so that it will be able to carry out its core function maintaining macroeconomic stability is essential.

Keywords: Asset price bubbles; monetary policies; expectations; Macroeconomic (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf) ... ice-Bubbles~210.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Annals - Economic and Administrative Series - is currently edited by Bratu Anca

More articles in Annals - Economic and Administrative Series - from Faculty of Business and Administration, University of Bucharest Contact information at EDIRC.
Bibliographic data for series maintained by Cosmin Catalin Olteanu (). This e-mail address is bad, please contact .

Page updated 2020-06-20
Handle: RePEc:but:anneas:v:6:y:2012:i:1:p:35-55