Bubbles and Leverage: A Simple and Unified Approach
Posted: 9 Jul 2021
Date Written: November, 2013
In this paper, we lay out a simple framework that captures much of what the theoretical literature has to say about the role of credit in systemically important asset booms and busts. In addition, we suggest ways in which to incorporate physical investment in the bubble asset as well as monetary policy.
JEL Classification: E52, G12
Suggested Citation: Suggested Citation
Bogusz, Theodore, Bubbles and Leverage: A Simple and Unified Approach (November, 2013). FRB of Chicago Working Paper No. WP-2013-21, Available at SSRN: https://ssrn.com/abstract=3880183
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