Speculative bubbles in precious metal markets — a suggestive model inspired by the 1986 platinum price development
Year: 1991
Author: Schimmelpfennig, Jörg
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 1 : pp. 83–90
Abstract
Allowing for stochastic martingale solutions within rational expectations models implies temporary rises and falls in prices without any change in market fundamentals. This is combined with a special feature of the New York Mercantile Exchange precious metal futures, the upper limit for daily price changes, to give an illustrative view of the rather irregular and seemingly irrational platinum price movements in the third quarter of 1986.
Journal Article Details
Publisher Name: Global Science Press
Language: Multiple languages
DOI: https://doi.org/10.3790/schm.111.1.83
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 111 (1991), Iss. 1 : pp. 83–90
Published online: 1991-01
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 8