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A Systematic Banking Collapse in a Perfect Foresight World / Robert P. Flood, Peter M. Garber.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Flood, Robert P.
Contributor:
National Bureau of Economic Research.
Garber, Peter M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w0691.
NBER working paper series no. w0691
Language:
English
Subjects (All):
Economic forecasting--Mathematical models.
Economic forecasting.
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1981.
Cambridge, Mass. : National Bureau of Economic Research, 1981.
Summary:
In this paper we present a model in which a systematic banking collapse is possible in a perfect foresight, general equilibrium context. Our aim is to determine con3itions under which a collapse will eventually occur and the timing of such a collapse. The collapse can occur endogenously, driven by market fundamentals. Alternatively, it can be caused by a mass hysteria which generates itself in reality. Vie also compare the assumptions and implications of our model to the observable phenomena of the 1930's.
Notes:
Print version record
June 1981.
Includes bibliographical references.

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