Informational overshooting, booms, and crashes

Article Abstract:

Stock market booms and crashes can be rationally explained by a phenomenon called informational overshooting, which states that stock prices will overshoot if market fundamentals change for an unknown period of time. Empirical evidence also shows that the stock market experiences a boom and a crash when an economy expands to an undetermined size. Informational shooting can take place when stock dividends are decreasing, although such a scenario is less likely. Aside from informational overshooting, irrational speculation can also result in stock market booms and crashes.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Econometrics & Model Building, Models, Prices and rates, Stocks, Stock-exchange, Stock exchanges, Bear market, Exchanges, Econometrics, Stock prices, Business models, Bull market

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Commodity money inflation: theory and evidence from France in 1350-1436

Article Abstract:

Commodity money can be inflated as fiat money through repeated debasements. A theory of inflation in commodity money is presented and the evidences from inflationary episodes in France during the 14th and 15th century are provided to support the theory.

France, Commodity markets

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Do expected future marginal costs drive inflation dynamics?

Article Abstract:

The two-step minimum distance estimation procedure proposed by Sbordone (2002) is applied to New Keynesian Philips curve to examine the inflation dynamics of future marginal costs.

Analysis, Keynesian economics, Monetary systems

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