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Asset Price Bubbles: The Implications for Monetary, Regulatory, and International Policies by William Curt Hunter 
"How should policymakers react to asset price movements that cannot be explained by standard models? To answer this question, it is not enough to identify a bubble and understand its origins. One needs also to predict the impact of monetary policy on an event that is by its nature difficult to explain. While comprehensive answers are scarce, this wonderful and comprehensive collection of readings marks an important step forward, and will provide plenty of food for thought and debate."

Table of Contents

1	Asset price bubbles, information, and public policy	3
2	Asset price bubbles and their implications for monetary policy and financial stability	15
3	Rational and nonrational bubbles	23
4	Diverse views on asset bubbles	35
5	Asset prices and monetary policy	41
6	U.S. stock market crashes and their aftermath : implications for monetary policy	53
7	Japan's experience with asset price bubbles : is it a case for inflation targeting?	81
8	Lending booms, real estate bubbles, and the Asian crisis	101
9	Tropical bubbles : asset prices in Latin America, 1980-2001	127
10	Different countries, similar experience	163
11	Comments on recent experiences with asset price bubbles	165
12	Stocks as money : convenience yield and the tech-stock bubble	175
13	Bubble psychology	205
14	Bubbles in real estate markets	217
15	Comments on : "Stocks as money ..." and "Bubble psychology"	231
16	Comments on theory and history of asset price bubbles	239
17	Imbalances or "bubbles?" : implications for monetary and fianancial stability	247
18	Testing for stock market overvaluation/undervaluation	271
19	A stochastic index of the cost of life : an application to recent and historical asset price fluctuations	277
20	Comments on empirical dimensions of asset price bubbles	291
21	Bubbles, inflation, and the big one : comments on "A stochastic index of the cost of life ..." and "Testing for stock market overvaluation/undervaluation"	299
22	Globalization and changing patterns in crisis transmission	309
23	Asset price bubbles and stock market interlinkages	323
24	Banking policy and macroeconomic stability : an exploration	337
25	A global perspective on extreme currency linkages	361
26	Comments : shifting the risk after shifting the focus	383
27	Valuation and new economy firms	391
28	Home bias, transactions costs, and prospects for the Euro	403
29	Comments on "Valuation and new economy firms"	419
30	Asset prices in a flexible inflation targeting framework	427
31	Interest rate policy should not react directly to asset prices	445
32	Comments on implications of bubbles for monetary policy	459
33	The historical pattern of economic cycles and their interaction with asset prices and financial regulation	467
34	Asset price bubbles and prudential regulation	481
35	The morning after : restructuring in the aftermath of an asset bubble	503
36	Comments on "The historical pattern of economic cycles and their interaction with asset prices and financial regulation"	517
37	Comments on "Asset price bubbles and prudential regulation"	523
38	Comments on "The morning after..."	529
39	Banking provisions and asset price bubbles	537
40	Looking forward on monetary and supervision policies to protect against bubbles	547
41	Planning to protect against asset bubbles	553