Ricardo Reis on the Macroeconomics of Financial Crises and the Recent Inflation Surge
Macro Musings with David Beckworth
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The Monolutron Bubble
The fundamental value is, again, it's a discounted value of payoff streams. And then there is the fact that you're thinking you may be able to sell it to someone else later on at a higher price. The combination of those two is our attempt to synthesize what we think are part of the lectures, David. This is a process known as backwards induction and this has been what I think has been well developed in the last 23 years about bubbles.
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