01779cas a2200241 a 4500 AALejournalIMF007751 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451975437 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Asset Prices and Time-Varying Risk. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Observers have often characterized asset markets as being subject to periods of tranquility and periods of turbulence. Until recently, however, researchers were unable to produce closed-form asset pricing formulas in a model environment of time-varying risk. Some work by Abel provided us with the insights needed to produce such formulas. This paper gives a exposition of how to develop the formulas in an environment where the formulas may by obtained using a simple extension of standard tools. While the paper is intended mainly as an exposition of new work, it also contains a report on the asset market effect of fiscal reform. It is found that entering a period of weak coordination between government spending and taxing (tax rate) policy is good for stock prices. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/042/001.1988.issue-042-en.xml IMF e-Library