Positive Feedback Investment Strategies and Destabilizing Rational Speculation
نویسندگان
چکیده
منابع مشابه
Price Destabilizing Speculation
The Harvard community has made this article openly available. Please share how this access benefits you. Your story matters. It is sometimes asserted that rational speculative activity must result in more stable prices because speculators buy when prices are low and sell when they are high. This is incorrect. Speculators buy when the chances of price appreciation are high, selling when the chan...
متن کاملMarket Turmoil and Destabilizing Speculation
This paper explores how speculators can destabilize financial markets by amplifying negative shocks in periods of market turmoil, and confirms the main predictions of the theoretical analysis using data on money market funds (MMFs). I propose a dynamic trading model with two types of investors —long-term and speculative —who interact in a market with search frictions. During periods of turmoil ...
متن کاملassessing metacognitive awareness and learning strategies as positive predictors in promoting l2 learners’ reading comprehension
the purpose of this thesis was to investigate how differently metacognitive, cognitive, and social/affective strategies affect l2 learners’ reading comprehension. to this end, the study employed a quasi-experimental design with a placement test as a proficiency test to find the homogeneity of groups. three classes were randomly selected as the experimental groups (n =90), and each class was tau...
Speculation, Overpricing, and Investment - Theory and Empirical Evidence
In this paper I investigate whether firms’ physical investments react to the speculative over-pricing of their securities. I introduce investment considerations in an infinite horizon continuous time model with short sale constraints and heterogeneous beliefs along the lines of Scheinkman and Xiong (2003). I obtain closed form solutions for all quantities involved. I show that market based q an...
متن کاملHedging , speculation , and investment in balance - sheet triggered currency crises
This paper explores the linkage between corporate risk management strategies, investment, and economic stability in an open economy with a flexible exchange rate regime. Firms use currency futures contracts to manage their exchange rate exposure – caused by balance sheet effects as in Krugman (2000) – and therefore their investments’ sensitivity to currency risk. We find that, depending on whet...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: The Journal of Finance
سال: 1990
ISSN: 0022-1082
DOI: 10.1111/j.1540-6261.1990.tb03695.x