tailieunhanh - Monetary Policy and Stock Market Boom-Bust Cycles

Fair value is “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” As a result, the quoted price for a single unit is used in determining fair value, regardless of how many shares or units are held. The fair value of an equity security is readily determinable if it meets any of the conditions listed in the Master Glossary. The determination of whether an equity security has a readily determinable fair value is made as of each statement of financial position. | EUROPEAN CENTRAL BANK EUROSYSTEM WORKING PAPER SERIES NO 955 I OCTOBER 2008 EUROPEAN CENTRAL BANK EUROSYSTEM WORKING PAPER SERIES NO 955 OCTOBER 2008 MONETARY POLICY AND STOCK MARKET BOOM-BUST CYCLES 1 by Lawrence Christiano 2 Cosmin Ilut 2 Roberto Motto 3 and Massimo Rostagno 3 In 2008 all ECB publications feature a motif taken from the 10 banknote. This paper can be downloaded without charge from http or from the Social Science Research Network electronic library at http abstract_id 1285421. Ì This paper expresses the views of the authors and not necessarily those of the European Central Bank. We are especially grateful for the comments of Andrew Levin. We have also benefited from the comments of Paul Beaudry and of Giovanni Lombardo. 2 Northwestern University 2003 Sheridan Road Evanston IL 60208 USA e-mail l-christiano@ c-ilut@ 3 European Central Bank Kaiserstrasse 29 D-60311 Frankfurt am Main Germany e-mail European Central Bank 2008 Address Kaiserstrasse 29 60311 Frankfurt am Main Germany Postal address Postfach 16 03 19 60066 Frankfurt am Main Germany Telephone 49 69 1344 0 Website http Fax 49 69 1344 6000 All rights reserved Any reproduction publication and reprint in the form of a different publication whether printed or produced electronically in whole or in part is permitted only with the explicit written authorisation of the ECB or the aathorf . The views expressed in this paper do not necessarily reflect those of the European Central Bank. The statement of purpose for the ECB Working Paper Series is availablefrom the ECB website http . eeupubbsscentificcwipsdaat httm index. ISSN 1561-0810 print ISSN 1725-2806 online

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