Animal Spirits and Risk in Financial Markets
Keynes argues that a beauty contest in financial markets is a combination of rational higher-order beliefs and market psychology or animal spirits. We find that a stable equilibrium, where also market psychology is included, can be possible if uninformed investors agree to reduce their required rate...
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| Format: | Article |
| Language: | English |
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University of Warsaw
2018-02-01
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| Series: | Journal of Banking and Financial Economics |
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| Online Access: | https://jbfe.wz.uw.edu.pl/resources/html/article/details?id=202781 |