Asset shortages fuel price bubbles: IMF paper

imf-2

An International Monetary Fund paper published on Tuesday says asset-price bubbles are generated by a lack of high-yield assets relative to low-yield ones.

Stefano Giglio and Tiago Severo, the paper's authors, use an overlapping generations model with financial frictions and accumulation of both physical and intangible capital to examine whether capital accumulation in developed countries induced a shortage of high-yield financial assets and a surplus of low-yield securities in capital markets.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: