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How does speculation affect macroeconomic stability?
How did speculative boom affect the stock market?
Does housing speculation predict economic outcomes during the boom?
How do speculative bubbles affect macro-economic outcomes?
suggestive of widespread speculation. Figures 1C and 1D illustrate the growth and investment boom and bust that accompanied the market’s gyrations. The nature and policy dilemmas of speculative expansions have attracted much attention (e.g., International Monetary Fund (IMF), 2000; Robert J. Shiller, 2000; Stephen Cecchetti et al., 2000),
Speculation in the boom years reduces asset prices, aggregate demand, and output in the subsequent recession. Macroprudential policies that restrict speculation in the boom can improve macroeconomic stability and social welfare. Alp Simsek Department of Economics, E52-552 MIT 77 Massachusetts Avenue Cambridge, MA 02139 and NBER asimsek@mit.edu
- Alp Simsek
- 2021
May 21, 2024 · adjective. A piece of information that is speculative is based on guesses rather than knowledge. [...] See full entry for 'speculative' Collins COBUILD Advanced Learner’s Dictionary. Copyright © HarperCollins Publishers. COBUILD Collocations. speculative boom.
Speculation in the boom years reduces asset prices, aggregate demand, and output in the subsequent recession. Macroprudential policies that restrict speculation in the boom can improve macroeconomic stability and social welfare.
- Alp Simsek
- 2021
In this chapter, I develop the argument that speculation is fundamental in shaping the contemporary crisis of construction. This entails the overproduction of buildings and infrastructure, and a regressive urbanism in which the benefits of construction projects do not accrue to the most disadvantaged, while the ecological integrity of the ...
Economics. An economic bubble (also called a speculative bubble or a financial bubble) is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify.
When these speculators purchase more non-owner-occupied homes in an area during a housing boom, their speculation can magnify the boom and contribute not only to a greater price drop, but also to a more severe economic contraction, during the subsequent housing bust.
