uncertainty. Positive/negative bubbles arise when prior public beliefs about the aggregate productivity of producers (business … uncollateralized credit. We find that this kind of policy is more successful in suppressing equity price swings than moderating output …

uncertainty. Positive/negative bubbles arise when prior public beliefs about the aggregate productivity of producers (business … macroprudential policy is represented by a convex dependence of bank capital requirements on the quantity of uncollateralized credit …

overnight repurchase agreements (repo) and loan-level credit registry data on corporate loans. We find that borrowers on the …

How do housing bubbles affect other economic sectors? We show that in the presence of collateral constraints, a bubble … initially raises housing credit demand and crowds out credit to non-housing firms. If the bubble lasts, however, housing credit … repayments raise banks' net worth and expand credit supply, so that crowding-out eventually gives way to crowding-in. This is …