Asset bubbles : re-thinking policy for the age of asset management / / Bradley Jones

• Autore: Jones Bradley
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2015
• Descrizione fisica: 1 online resource (60 pages)
• Disciplina: 332.10681
• Soggetto topico: Asset-liability management; Financial risk management; Monetary policy; Economic policy; Finance: General; Financial Risk Management; Macroeconomics; Financial Markets and the Macroeconomy; Central Banks and Their Policies; Financial Crises; Information and Market Efficiency; Event Studies; International Financial Markets; General Financial Markets: Government Policy and Regulation; Price Level; Inflation; Deflation; General Financial Markets: General (includes Measurement and Data); Economic & financial crises & disasters; Finance; Asset prices; Asset bubbles; Asset management; Financial sector stability; Stock markets; Prices; Financial crises; Asset and liability management; Financial sector policy and analysis; Financial markets; Financial services industry; Stock exchanges
• Soggetto geografico: United States
• Note generali: Description based upon print version of record.
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover; Abstract; Contents; I. Introduction; Figures; Figure 1. Worldwide Financial Assets and Institutional Assets; Figure 2. Bank Assets vs. Investment Firm Assets under Management; II. The 'Clean vs. Lean' Debate: A Survey; Tables; Table 1. Dimensions of the Traditional 'Clean vs. Lean' Debate; III. Theories of (In)Efficient Markets and Speculative Bubbles; A. Bubbles and the (In)Efficiency of Markets - A Review; B. Competing Models of Bubble Formation and Persistence; Table 2. Stylized Summary of Asset Pricing/Bubble Models; Figure 3. Benchmark Decomposition of Hedge Fund Returns ; Figure 4. Subjective vs. Objective Expected Returns IV. Policy Implications; Table 3. Mapping Policy Responses to Bubble Models; Figure 5. Relative 10-year Annualized Out performance of Fundamental-based Indices; V. Concluding Remarks and Future Research
• Sommario/riassunto: In distilling a vast literature spanning the rational— irrational divide, this paper offers reflections on why asset bubbles continue to threaten economic stability despite financial markets becoming more informationally-efficient, more complete, and more heavily influenced by sophisticated (i.e. presumably rational) institutional investors. Candidate explanations for bubble persistence—such as limits to learning, frictional limits to arbitrage, and behavioral errors—seem unsatisfactory as they are inconsistent with the aforementioned trends impacting global capital markets. In lieu of the short-term nature of the asset owner—manager relationship, and the momentum bias inherent in financial benchmarks, I argue that the business risk of asset managers acts as strong motivation for institutional herding and ‘rational bubble-riding.’ Two key policy implications follow. First, procyclicality could intensify as institutional assets under management continue to grow. Second, remedial policies should extend beyond the standard suite of macroprudential and monetary measures to include time-invariant policies targeted at the cause (not just symptom) of the problem. Prominent among these should be reforms addressing principal-agent contract design and the implementation of financial benchmarks.
• Titolo autorizzato: Asset bubbles
• ISBN: 1-4983-9762-X; 1-4983-0415-X
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910812160703321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2015/027