A Practical Anti-Bubble Prescription

9 Pages Posted: 30 Jul 2012 Last revised: 11 Sep 2012

See all articles by Sandro C. Andrade

Sandro C. Andrade

University of Miami - Department of Finance

Jiangze Bian

University of International Business and Economics (UIBE)

Timothy R. Burch

University of Miami - Department of Finance

Date Written: July 27, 2012

Abstract

We argue that coordinated mass dissemination of information about asset fundamentals should make asset markets less prone to bubbles. The key idea is to establish a centralized and popular information source to make key information common knowledge across as many market participants as possible. This realistic, micro-level anti-bubble policy faces fewer challenges than monetary policy and macro-prudential tools.

Keywords: bubbles, real estate bubble, housing bubble, stock market bubble

JEL Classification: G28, G14, E52

Suggested Citation

Andrade, Sandro C. and Bian, Jiangze and Burch, Timothy R., A Practical Anti-Bubble Prescription (July 27, 2012). Available at SSRN: https://ssrn.com/abstract=2119450 or http://dx.doi.org/10.2139/ssrn.2119450

Sandro C. Andrade

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States

HOME PAGE: http://moya.bus.miami.edu/~sandrade/

Jiangze Bian

University of International Business and Economics (UIBE) ( email )

10, East Huixin Street, Chaoyang District
Beijing, 100029
China

Timothy R. Burch (Contact Author)

University of Miami - Department of Finance ( email )

P.O. Box 248094
Coral Gables, FL 33124-6552
United States
305-284-1509 (Phone)
305-284-4800 (Fax)

HOME PAGE: http://www.bus.miami.edu/~tburch

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