演講者簡介 : Professor Tai-Wei Hu received his Ph.D. in Economics from Penn State University in 2009. He is currently Assistant Professor of Economics at Kellogg School of Management, Northwestern University. His research fields are the Decision theory, Game theory, Monetary theory.
演講摘要 : We investigate the effects of monetary policy on asset prices in economies where assets are traded in over-the-counter (OTC) markets. The trading mechanism in pairwise meetings is designed to maximize social welfare taking as given the frictions in the environment (e.g., lack of commitment and limited enforcement) and monetary policy. We show that asset price "bubbles" emerge in a constrained-efficient monetary equilibrium only if liquidity is abundant and the first best is implementable. In contrast, if liquidity is scarce, assets are priced at their fundamental value in any constrained-efficient monetary equilibrium, in which case an increase in inflation has no effect on asset prices, but it reduces output and welfare. Finally, for low inflation rates the bursting of an asset price bubble can be an optmal response to a shock that reduces assets' resalability.
