Financial bubble theories emphasize the importance of behavioral mechanisms cen- tered around investor beliefs, which can be potentially gleaned from prevailing nar- ratives, that reflect investors’ psychological states and link them to economic events. By summarizing market narratives into...

This survey systematizes the rapidly growing literature on the influence of monetary policy and macroprudential policy on the macroeconomy. It examines the impact of monetary policy on the financial cycle and asks how macroprudential instruments influence the efficiency of monetary policy. The...