Distress selling and asset market feedback

Ilhyock Shim and Goetz von Peter ()

No 229, BIS Working Papers from Bank for International Settlements

Abstract: This paper examines the process of distress selling and asset market feedback. It splits this process into several stages, in order to analyse what triggers distress selling, why asset prices fall, and how falling prices generate additional rounds of selling. This framework enables us to understand and compare models relevant to distress selling from diverse literatures. The paper also considers what policy options are available at each stage to mitigate the adverse economic consequences of distress selling and asset market feedback.

Keywords: Financial distress; distress selling; asset market feedback; banking crises; financial instability (search for similar items in EconPapers)
Pages: 55 pages
Date: 2007-06
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Citations: View citations in EconPapers (16)

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Related works:
Journal Article: Distress Selling and Asset Market Feedback (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:bis:biswps:229

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