in our model are caused by declines in expected returns, increases in expected profitability, or increases in prior … uncertainty about average profitability. The model predicts that IPO waves are preceded by high market returns, followed by low …

We propose a model of money, credit and bubbles, and use it to study the role of monetary policy in managing asset … bubbles. In this model, bubbles pop up and burst, generating fluctuations in credit, investment and output. Two key insights … emerge from the analysis. First, the growth rate of bubbles, which is driven by agents' expectations, can be set in real or …