scholarly journals Asset Price Shocks, Financial Constraints, and Investment: Evidence from Japan

2001 ◽  
Author(s):  
Vidhan K. Goyal ◽  
Takeshi Yamada
Keyword(s):  
Financial Constraints ◽  
Asset Price ◽  
Price Shocks

scholarly journals Asset Price Shocks, Financial Constraints, and Investment: Evidence from Japan

2004 ◽  
Vol 77 (1) ◽  
pp. 175-199 ◽  
Author(s):  
Vidhan K. Goyal ◽  
Takeshi Yamada
Keyword(s):  
Financial Constraints ◽  
Asset Price ◽  
Price Shocks

THE PERIOD OF FINANCIAL DISTRESS IN SPECULATIVE MARKETS: INTERACTING HETEROGENEOUS AGENTS AND FINANCIAL CONSTRAINTS

2010 ◽  
Vol 15 (1) ◽  
pp. 60-79 ◽  
Author(s):  
Mauro Gallegati ◽  
Antonio Palestrini ◽  
J. Barkley Rosser
Keyword(s):  
New York ◽  
Transaction Costs ◽  
Financial Distress ◽  
Financial Constraints ◽  
Wealth Distribution ◽  
Asset Price ◽  
Large Mass ◽  
Speculative Bubbles ◽  
History Of ◽  
Significant Mass

We investigate how stochastic asset price dynamics with herding and financial constraints explains the presence of aperiod of financial distress(PFD) following the peak and preceding the crash of a bubble [Charles P. Kindleberger,Manias, Panics, and Crashes: A History of Financial Crisis, 4th ed. (New York: Wiley, 2000, Appendix B)] as common among most major historical speculative bubbles. Simulations show that the PFD is due to (1) agents' wealth distribution dynamics and (2) positive and sufficiently high transaction costs generating losses for a significant mass of the agents' distribution after the peak of the bubble. The use of transaction costs to get the result is only a modeling tool. Many other mechanisms—able to generate losses for a large mass of the agents' distribution in periods in which financial constraints bind—can produce the same result. The paper also shows how the PFD is affected by a variation of the sensitivity of price to the excess demand and by the switching strategy.

scholarly journals Real-Time Warning Signs of Emerging and Collapsing Chinese House Price Bubbles

2013 ◽  
Vol 223 ◽  
pp. R39-R48 ◽  
Author(s):  
Xi Chen ◽  
Michael Funke
Keyword(s):  
Real Time ◽  
Unit Root ◽  
House Prices ◽  
Asset Price ◽  
House Price ◽  
Warning Signs ◽  
Unit Root Tests ◽  
Price Shocks ◽  
Speculative Bubbles ◽  
Price Bubbles

The recent increase in Chinese house prices has led to concerns that China is vulnerable to asset price shocks. In this paper, we apply recently developed recursive unit root tests to spot the beginning and the end of potential speculative bubbles in Chinese house price cycles. Overall, we find that except for 2009–10 actual house prices are not significantly disconnected from fundamentals. Thus, the evidence for speculative house price bubbles in China is in general weak.

Monetary policy and the effect of the transfer of oil prices to inflation

2020 ◽  
pp. 41-50
Author(s):  
Ph. S. Kartaev ◽  
I. D. Medvedev
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Dynamic Models ◽  
Oil Prices ◽  
Oil Price ◽  
Oil Price Shocks ◽  
Negative Effects ◽  
Price Shocks ◽  
Policy Regime ◽  
The Impact

The paper examines the impact of oil price shocks on inflation, as well as the impact of the choice of the monetary policy regime on the strength of this influence. We used dynamic models on panel data for the countries of the world for the period from 2000 to 2017. It is shown that mainly the impact of changes in oil prices on inflation is carried out through the channel of exchange rate. The paper demonstrates the influence of the transition to inflation targeting on the nature of the relationship between oil price shocks and inflation. This effect is asymmetrical: during periods of rising oil prices, inflation targeting reduces the effect of the transfer of oil prices, limiting negative effects of shock. During periods of decline in oil prices, this monetary policy regime, in contrast, contributes to a stronger transfer, helping to reduce inflation.

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