We model the relationship between asset float (tradeable shares) and speculative bubbles. Investors trade a stock with …

will be optimal varies from one type of bubble to another and, for certain bubbles, from one period to the next. It is …

We analyse deflationary bubbles in a model where money is the only financial asset. We show that such bubbles are … sharp contrast to those in several prominent contributions to the literature, where deflationary bubbles are ruled out by … deflationary bubbles. Moreover, it rules out Friedman's optimal quantity of money equilibrium and, when the nominal money stock is …

Stock-market crashes tend to follow run-ups in prices. These episodes look like bubbles that gradually inflate and then … suddenly burst. We show that such bubbles can form in a Zeira-Rob type of model in which demand size is uncertain. Two …

. The latter is more likely if bubbles develop along the expansionary path. These (rational) bubbles can emerge even when …

substantial bubbles …