are usually preceded by credit booms. Second, credit booms often do not result in a crisis. That is, there are "good …

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 … away from bubbles - and the credit that they sustain - to money, reducing intermediation, investment and growth. We explore …

others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit … slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon …What risks do asset price bubbles pose for the economy? This paper studies bubbles in housing and equity markets in 17 …

environment is conducive to countries experiencing credit bubbles that have large macroeconomic effects at home and are quickly … and domestic effects of these credit bubbles. This paper extends that framework to two-country setting and studies the … channels through which credit bubbles are transmitted across countries. We find that there are two main channels that work …

beyond other better-known early warning indicators, such as credit booms. This predictive power, however, only holds in … the short-term popularity benefits of weak credit booms rather than implementing politically costly corrective policies …

are too low. In this environment, changes in investor sentiment or market expectations can give rise to credit bubbles … "optimal" bubble by taxing credit when the "equilibrium" bubble is too high, and subsidizing credit when the "equilibrium …We study a dynamic economy where credit is limited by insufficient collateral and, as a result, investment and output …

back into financial conditions, prolonging the credit boom and delaying the response to the bubble when the speculative …