Guest Contribution: “When Does Monetary Tightening Deflate a Stock-Market Bubble?”
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Today, we are pleased to present a guest contribution written by Jamel Saadaoui (Université Paris 8-Vincennes).
Our paper, written with William Ginn and Evangelos Salachas, “Stock Price Bubbles, Inflation and Monetary Policy Surprises,” asks when monetary tightening restrains speculative equity valuations—and when it does not.
A contractionary monetary-policy surprise is normally expected to raise required returns, tighten credit conditions, weaken risk-taking, and reduce the present value
Our paper, written with William Ginn and Evangelos Salachas, “Stock Price Bubbles, Inflation and Monetary Policy Surprises,” asks when monetary tightening restrains speculative equity valuations—and when it does not.
A contractionary monetary-policy surprise is normally expected to raise required returns, tighten credit conditions, weaken risk-taking, and reduce the present value
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