This paper examines the process of distress selling and asset market feedback.It splits this process into several stages, in order to analyse what triggers distress selling, why asset prices fall, and how falling prices generate additional rounds of selling. This framework enables us to understandand compare models relevant to distress selling from diverse literatures. The paper also considers what policy options are available at each stage to mitigate the adverse economic consequences of distress selling and asset market feedback.
|Keywords:||finančni trg, podjetje, likvidnost, prodaja, sredstva, krize, ekonomski razvoj, cikli, financial market, enterprises, liquidity, sales, assets, crises, economic development, business cycles|
|Work type:||Not categorized (r6)|
|Organization:||EF - Faculty of Economics|
|Publisher:||Bank for International Settlements, Monetary and Economic Department|
|Number of pages:||49 str.|
|Average score:||(0 votes)|
|Your score:||Voting is allowed only to logged in users.|