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Library | Item Barcode | Call Number | Material Type | Item Category 1 | Status |
|---|---|---|---|---|---|
Searching... | 30000010210152 | HG6015 B76 2008 | Open Access Book | Book | Searching... |
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Summary
Summary
Drawing on behavioral finance theory and contemporary experience, this book explores how bubbles form and subsequently burst. The author introduces a new concept of swings in market temperature defined by the extent of heterogeneity of opinion and soft irrationality, and examines the importance of these swings in the credit markets.
Author Notes
Brendan Brown is an international economist practising in the city of London. He has authored many previous books on international financial topics, including Japanese and European monetary issues both actual and historical. His postgraduate degrees are from the University of Chicago and London School of Economics. He is a regular contributor to the Japanese financial media.
Reviews 1
Choice Review
Brown, an international economist practicing in the city of London, begins by inconclusively defining bubbles and when markets are hot or cold. He ascertains under what conditions positive benefits can accrue to society from speculation, and he notes the influence of credit conditions on speculation in commodity and currency markets. Perceived manifestations of financial genius by investors of other people's money also may generate market bubbles whose success eventually leads to their undoing. In the latter portion of the volume, Brown defines carry trade. He traces its history from prior to 1914 to the present before examining what policy makers can do, when, and why, to restrain overheated markets. The concluding chapter includes reviews of the events leading up to the Japanese credit bubble from 1987 to 1990 and of US monetary policies from 1920 to 1933, during the late 1990s, and from 2003 to 2007, as well as assessments of recent policies of the Board of Governors of the Federal Reserve System leading up to the bursting of the dot-com, housing, and credit market bubbles. Summing Up: Recommended. Comprehensive research collections. E. L. Whalen formerly, Clarke College
Table of Contents
| Markets Hot and Cold |
| Is Speculation a Positive Sum Game? |
| Bubbles in Financial Genius |
| What's New about the Carry Trade? |
| How to Reduce Toxic Waste? |
