Financial Market Crisis as a Phenomenon of Stock Market Overshooting. A Theoretical Analysis
Austrian Economic Quarterly, 2010, 15(1), S.78-85
An overly expansionary monetary policy stance (particularly in the USA) fuelled speculation on stock markets; when the bubble burst, economies fell into recession. These mechanisms are explained in a theoretical model with three inter-acting markets for money, equities and goods.
Keywords:Financial Market Crisis; Overshooting; Analysis
Forschungsbereich:Makroökonomie und europäische Wirtschaftspolitik