Quotation Breuss, Fritz. 2010. Financial Market Crisis as a Phenomenon of Stock Market Overshooting. Austrian Economic Quarterly 15 (1): 78. http://www.wifo.ac.at/wwa/jsp/index.jsp?fid=23923&id=39072&typeid=8&display_mode=2.




A theoretical model sets out to explain how, in an interplay between money, equity and goods markets, an overly expansionary monetary policy stance (notably in the USA) fuelled stock market speculation developing a bubble that burst after prices had overshot their long-term equilibrium. The subsequent collapse of share prices triggered a recession on the goods. This theoretical explanation of the financial market crisis by means of a three-market-model may also contribute towards a better understanding of the mortgage boom and the following subprime crisis on the US housing market and how this led to a global crisis. Abstracting from the more complex origins of the current financial market and economic crisis, the main focus is set on the influences from the monetary policy side.


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Status of publication Published
Affiliation WU
Type of publication eJournal article
Journal Austrian Economic Quarterly
Language English
Title Financial Market Crisis as a Phenomenon of Stock Market Overshooting
Volume 15
Number 1
Year 2010
Pages 78
URL http://www.wifo.ac.at/wwa/jsp/index.jsp?fid=23923&id=39072&typeid=8&display_mode=2


Breuss, Fritz (Details)
Department of Economics (Badinger) (Details)
Europainstitut (Badinger) (Former organization)
Research areas (Ă–STAT Classification 'Statistik Austria')
5115 European integration (Details)
5300 Economics (Details)
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