3 On the Economic Relevance of Rational Bubbles 79 3. 1 Capital markets . . . . . . . . . 80 3. 1. 1 Efficient capital markets 86 3. 1. 2 Rational bubbles on ca

Discuss four crisis-prone areas of the economy-monetary control, bankruplcy, the international economy, and speculative bubbles.

As long as there have been financial markets, there have been bubbles—those moments in which asset prices inflate far beyond their intrinsic value, often with

A study of asset price bubbles and the implications for preventing financial instability.

The presence of speculative bubbles in capital markets (an important area of interest in financial history) is widely accepted across many circles. Talk of them