The impact of interest rate policy on individual expectations and asset bubbles in experimental markets

• المؤلفون الرئيسيون: Bao, Te, Zong, Jichuan
• مؤلفون آخرون: School of Social Sciences
• التنسيق: مقال
• اللغة: English
• منشور في: 2020
• الموضوعات: Social sciences::Economic theory; Interest Rate Policy; Asset Bubble
• الوصول للمادة أونلاين: https://hdl.handle.net/10356/142772
• المؤسسة: Nanyang Technological University

We run a learning-to-forecast experiment with an interest rate policy in which the interest rate will increase/lower sharply when the deviation of asset prices from the fundamental value moves above/below a threshold. Our results show that the average price deviation (“bubble”) is significantly lowe...