EconPapers    
Economics at your fingertips  
 

Leverage Bubbles

Fares Triki ()
Additional contact information
Fares Triki: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: This paper investigates the relation between liquidity and asset prices. It shows that, when banks balance sheets are marked to market and banks are targeting a financial leverage level - a situation similar to current environment - formation of Leverage Bubble phenomenon and suggests a new regulation rule based on a Dynamic Leverage Ratio (DLR) rule.

Keywords: market liquidity; Financial crises; rational bubbles; Dynamic Leverage Ratio; mark to market accounting; asset pricing; macroprudential regulation; Crises financières; bulles rationnelles; bulles d'actif; levier financier; régulation; macroprudentielle (search for similar items in EconPapers)
Date: 2009-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00390688
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Published in 2009

Downloads: (external link)
https://shs.hal.science/halshs-00390688/document (application/pdf)

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: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00390688

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2023-02-13
Handle: RePEc:hal:journl:halshs-00390688