Monetary policy and asset price bubbles: a laboratory experiment

Leaning-against the-wind (LAW) policies, whereby interest rates are raised in the face of a growing asset price bubble, are often advocated as a means of dampening such bubbles. On the other hand, there are theoretical arguments suggesting that such a policy could have the opposite effect (Gal í, 20...

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Detalles Bibliográficos
Autores: Gali, Jordi, Giusti, Giovanni, Noussair, Charles
Tipo de recurso: artículo
Fecha de publicación:2021
País:España
Institución:TecnoCampus
Repositorio:Repositori Digital del TecnoCampus
OAI Identifier:oai:repositori.tecnocampus.cat:20.500.12367/2578
Acceso en línea:http://hdl.handle.net/20.500.12367/2578
Access Level:acceso abierto
Palabra clave:Monetary policy
Price bubbles
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spelling Monetary policy and asset price bubbles: a laboratory experimentGali, JordiGiusti, GiovanniNoussair, CharlesMonetary policyPrice bubblesLeaning-against the-wind (LAW) policies, whereby interest rates are raised in the face of a growing asset price bubble, are often advocated as a means of dampening such bubbles. On the other hand, there are theoretical arguments suggesting that such a policy could have the opposite effect (Gal í, 2014). We study the effect of monetary policy on asset price bubbles in a laboratory experiment with an overlapping generations structure. Participants in the role of the young generation allocate their endowment between two investments: a risky asset and a one-period riskless bond. The risky asset pays no dividend and thus the possibility of selling it to the next generation is its only source of value. [...]info:eu-repo/semantics/acceptedVersionElsevier202420242021info:eu-repo/semantics/article29 p.application/pdfapplication/pdfapplication/pdfhttp://hdl.handle.net/20.500.12367/2578reponame:Repositori Digital del TecnoCampusinstname:TecnoCampusInglésJournal of Economic Dynamics and Control. 2021 Sep;130:1-15© Elsevier http://doi.org/10.1016/j.jedc.2021.104184Attribution-NonCommercial-NoDerivatives 4.0 Internationalhttp://creativecommons.org/licenses/by-nc-nd/4.0/info:eu-repo/semantics/openAccessoai:repositori.tecnocampus.cat:20.500.12367/25782026-06-21T13:30:27Z
dc.title.none.fl_str_mv Monetary policy and asset price bubbles: a laboratory experiment
title Monetary policy and asset price bubbles: a laboratory experiment
spellingShingle Monetary policy and asset price bubbles: a laboratory experiment
Gali, Jordi
Monetary policy
Price bubbles
title_short Monetary policy and asset price bubbles: a laboratory experiment
title_full Monetary policy and asset price bubbles: a laboratory experiment
title_fullStr Monetary policy and asset price bubbles: a laboratory experiment
title_full_unstemmed Monetary policy and asset price bubbles: a laboratory experiment
title_sort Monetary policy and asset price bubbles: a laboratory experiment
dc.creator.none.fl_str_mv Gali, Jordi
Giusti, Giovanni
Noussair, Charles
author Gali, Jordi
author_facet Gali, Jordi
Giusti, Giovanni
Noussair, Charles
author_role author
author2 Giusti, Giovanni
Noussair, Charles
author2_role author
author
dc.subject.none.fl_str_mv Monetary policy
Price bubbles
topic Monetary policy
Price bubbles
description Leaning-against the-wind (LAW) policies, whereby interest rates are raised in the face of a growing asset price bubble, are often advocated as a means of dampening such bubbles. On the other hand, there are theoretical arguments suggesting that such a policy could have the opposite effect (Gal í, 2014). We study the effect of monetary policy on asset price bubbles in a laboratory experiment with an overlapping generations structure. Participants in the role of the young generation allocate their endowment between two investments: a risky asset and a one-period riskless bond. The risky asset pays no dividend and thus the possibility of selling it to the next generation is its only source of value. [...]
publishDate 2021
dc.date.none.fl_str_mv 2021
2024
2024
dc.type.none.fl_str_mv info:eu-repo/semantics/article
format article
dc.identifier.none.fl_str_mv http://hdl.handle.net/20.500.12367/2578
url http://hdl.handle.net/20.500.12367/2578
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv Journal of Economic Dynamics and Control. 2021 Sep;130:1-15
dc.rights.none.fl_str_mv © Elsevier http://doi.org/10.1016/j.jedc.2021.104184
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv © Elsevier http://doi.org/10.1016/j.jedc.2021.104184
Attribution-NonCommercial-NoDerivatives 4.0 International
http://creativecommons.org/licenses/by-nc-nd/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv 29 p.
application/pdf
application/pdf
application/pdf
dc.publisher.none.fl_str_mv Elsevier
publisher.none.fl_str_mv Elsevier
dc.source.none.fl_str_mv reponame:Repositori Digital del TecnoCampus
instname:TecnoCampus
instname_str TecnoCampus
reponame_str Repositori Digital del TecnoCampus
collection Repositori Digital del TecnoCampus
repository.name.fl_str_mv
repository.mail.fl_str_mv
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