Working paper
Financial liberalisaton, asset prices and exchange rates
OECD Economics Department working papers, Vol.95
Organisation for Economic Co-operation and Development
02/1991
DOI: 10.1787/204832165553
Abstract
This paper is one of four in this Working Paper Series, focusing on financial liberalisation, along with those of Kupiec, Driscoll and Blundell-Wignall and Browne. It surveys recent work, both theoretical and empirical, on the question of market efficiency in various asset markets. A number of studies of behaviour in the foreign exchange market, which provide evidence of departures from efficiency, are described. The paper summarises and discusses the implications of research on the effects of noise trading by "irrational" groups of agents, with particular reference to the stock market. The housing market is also considered as an example where pronounced price "bubbles" have appeared. The paper concludes with a discussion of the potential welfare impact of departures from efficiency in the foreign exchange market, where it is argued that the case for some form of intervention is strongest.
Details
- Title: Subtitle
- Financial liberalisaton, asset prices and exchange rates
- Creators
- Marcus MillerPaul Weller
- Resource Type
- Working paper
- Publication Details
- OECD Economics Department working papers, Vol.95
- DOI
- 10.1787/204832165553
- ISSN
- 1815-1973
- Publisher
- Organisation for Economic Co-operation and Development; Paris, France
- Number of pages
- 37 pages
- Language
- English
- Date published
- 02/1991
- Academic Unit
- Finance
- Record Identifier
- 9984963423202771
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