Asset Price Bubbles

In both the industrialized and developing worlds, a distinctive feature of the last
two decades has been prolonged buildups and sharp collapses in asset markets such as stock, housing,
and exchange markets. The volatility has sparked intense debate in academic and policy circles over
the appropriate monetary and regulatory response to dramatic market shifts.This book examines asset
price bubbles to further our understanding of the causes and implications of financial instability,
focusing on the potential of central banks and regulatory agencies to prevent it. The book grew out
of a conference jointly sponsored by the Federal Reserve Bank of Chicago and the World Bank Group in
April 2002.