Bachelor of Arts
Asset, Bubbles, Japan, Monetary, Policy, Inflation, Prices
This paper takes a different approach by developing a model based on the boom and bust cycle of Japan during the mid to late 1980's, using currently accepted theory. In section II, I review the general characteristics of asset bubbles to familiarize the reader and offer some historical examples. Section III offers a review of many of the theoretical papers on asset bubbles, as well as empirical papers, which involve similar phenomena in order to gain some insight in building the model. In section IV, I build a theoretical model. Section V begins preliminary testing to examine this theory and reviews the results. Finally, in section VI, I provide concluding remarks and discuss areas that I plan to explore in future research.
Fitchett, Christian, "Asset Price Inflation- Theory, History, and an Alternative Model" (2000). Honors Papers. 510.