Asset price bubble/Related Articles
From Citizendium, the Citizens' Compendium
- See also changes related to Asset price bubble, or pages that link to Asset price bubble or to this page or whose text .
- Economics : The analysis of the production, distribution, and consumption of goods and services.
- Financial system : The interactive system of organisations that serve as intermediaries between lenders and borrowers.
- Macroprudential financial policy : a regime that has the purpose of promoting the stability of banks and other financial institutions and the purpose of preserving the integrity of the financial system.
- Crash of 2008 : the international banking crisis that followed the subprime mortgage crisis of 2007.
- Subprime mortgage crisis : financial crisis arising from defaults on the United States mortgage markets.
- Basel I & Basel II : international banking regulations put forth by the Basel Committee on Bank Supervision of the Bank for International Settlements requiring banks' minimum capital adequacy ratios to be related to the riskiness of their loans.
- Bubble (economics) : A surge in prices that raises expectations of further increases, so generating further increases: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level.
- Capital adequacy ratio : The ratio of a bank's capital to its risk weighted credit exposures. May be defined in terms of tier 1 (core) or tier 2 capital.
- Central Bank : A government agency that is responsible for monetary policy and the support of the banking system (for example the Federal Reserve Board and the Bank of England). Usually responsible for controlling a country's monetary policy and preserving the value of its currency.
- Derivative : An asset whose value depends upon the expected value of another asset.
- Herding (finance) : A tendency to base decisions upon the actions of others - on the part of bankers, depositors or investors.
- Information cascade : A succession of incremental information distortions occurring as a result of herding behaviour.
- Leverage : (i) The use of borrowing to increase the amount of money that is available for investment or consumption. (ii) A proportional measure of indebtedness, such as the ratio of a company's debt to its shareholders' equity (the same as British "gearing"), or the ratio of the indebtedness of a household to the net value of its assets (ie net of its debts).
- Noise_traders : Traders who buy or sell shares for reasons unconnected with information about the issuing companies or the markets in which they operate.
- Positive feedback : A systemic reaction to an occurrence that has the effect of increasing the magnitude of that occurrence.
- Stop-loss : An order to sell an asset if its market price falls by more than a specified amount (a form of herding).