Professor Wang Pengfei's collaborative paper was published in Review of Economic Dynamics

A few days ago, the collaborative paper "Asset Bubbles and Foreign Interest Rate Shocks" by Professor Wang Pengfei, Deputy Dean of Peking University Shenzhen Graduate School and Dean of Peking University HSBC Business School, was officially published in the SSCI journal Review of Economic Dynamics (Volume 44, 2022, pp.

Review of Economic Dynamics is published by Elsevier on behalf of Society for Economic Dynamics.

The global financial crisis of 2008 brought renewed attention to asset bubbles

Professor Wang Pengfei's collaborative paper establishes and evaluates a dynamic stochastic general equilibrium (DSGE) model incorporating asset bubbles in order to understand the impact of foreign interest rate shocks on macroeconomic volatility and asset prices in emerging economies

This study presents a steady-state analysis of the effect of foreign interest rates on bubbles in small, open economies with indefinite periods

The most important contribution of the paper is the quantitative assessment of the impact of foreign interest rate shocks using our model and economic data from Mexico from the first quarter of 1990 to the fourth quarter of 2011, using Bayesian estimation methods

The paper's research shows that foreign interest rate shocks play a crucial role in explaining changes in a range of economic indicators, such as changes in net exports/GDP ratios, stock prices, and investment

Wang Pengfei, Deputy Dean of Peking University Shenzhen Graduate School, Dean of Peking University HSBC Business School, and Chair Professor of Economics