IDEAS home Printed from https://ideas.repec.org/a/ekm/repojs/v23y2003i1p39-62id887.html
   My bibliography  Save this article

The 2002 crash: from “irrational exuberance” to “infectious greed”

Author

Listed:
  • Maryse Farhi
  • Marcos Antonio Macedo Cintra

Abstract

This paper is an attempt to discuss the macroeconomic repercussions from deinflating a speculative bubble in stock markets and from an established low price trend. Revelations accrued this low price trend how comprise recommendations by financial analysts, corporation balance sheets, auditing companies and credit rating agencies make the asset pricing difficult, affect confidence by financial agents and contaminate their expectations. The crisis of confidence brought about by these revelations can potentially impact on economic growth of developed countries, beginning with the USA, raise risk aversion by investors and trigger reinforced regulation and supervision mechanisms in detriment to auto-regulating ones which had been prevailing up to the present moment. JEL Classification: F65; G14; G23.

Suggested Citation

  • Maryse Farhi & Marcos Antonio Macedo Cintra, 2003. "The 2002 crash: from “irrational exuberance” to “infectious greed”," Brazilian Journal of Political Economy, Center of Political Economy, vol. 23(1), pages 39-62.
    • Handle: RePEc:ekm:repojs:v:23:y:2003:i:1:p:39-62:id:887
    as

    Download full text from publisher

    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/887/2084
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Asset securitization; assimetrical informations; credit risk rating; risk rating agencies.;
    All these keywords.

    JEL classification:

    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ekm:repojs:v:23:y:2003:i:1:p:39-62:id:887. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brazilian Journal of Political Economy (Brazil) (email available below). General contact details of provider: https://centrodeeconomiapolitica.org/repojs/index.php/journal/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.