Abstract
The subjectivism of Austrian economics helps to explain the statistical fact of long memory in asset prices. The theory of Big Players is an Austrian approach to understanding the effects of discretionary policymaking in markets. It leads to implications that can be tested with statistics. In particular, Big Players induce herding and, thereby, an increase of persistence in asset prices. A recent episode in Slovenian monetary theory provides a case study. This case study adds to a set of similar studies, all tending to support the theory of Big Players.
Original language | English (US) |
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Pages (from-to) | 253-269 |
Number of pages | 17 |
Journal | Review of Austrian Economics |
Volume | 16 |
Issue number | 2-3 |
DOIs | |
State | Published - Sep 2003 |
Externally published | Yes |
Keywords
- Big Players
- Herding
- Monetary policy
- R/S analysis
- Slovenia
ASJC Scopus subject areas
- General Economics, Econometrics and Finance