Bernanke and Reinhart

If the liquidity or risk characteristics of securities differ, … then changes in relative demands by a large purchaser have potential to alter relative security prices. The same logic might lead the central bank to consider purchasing assets other than government securities, such as corporate bonds or stocks. Please follow and like us:0

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William N. Goetzmann

History is important to the study of financial bubbles precisely because they are extremely rare events, but history can be misleading. The rarity of bubbles in the historical record makes the sample size for inference small. Restricting attention to crashes that followed a large increase in market level makes negative historical outcomes salient. In this […]

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