BIS paper examines effects of negative asset price bubbles in Asia-Pacific

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A Bank for International Settlements paper published on Tuesday says cross-border spillovers led to a severe underpricing of various types of assets in the Asia-Pacific region during the recent financial crisis.

Andrew Filardo, the paper's author, measures the impact of financial market spillovers from the West to Asia-Pacific to examine monetary policy challenges from a negative asset-price bubble perspective. For a more systematic exploration of the nexus of asset price bubbles and monetary

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