bubbles, a bubble itself is not sufficient to cause real-side disruption. What central bankers should learn from Japan …

This paper reviews some of the most prominent asset price bubbles from the past 400 years and documents how central … banks (or other institutions) reacted to those bubbles. The historical evidence suggests that the emergence of bubbles is … also suggests that a purely passive “cleaning up the mess” stance toward the buildup of bubbles is, in many cases, costly …

We study the role of monetary policy when asset-price bubbles may form due to herd behavior in investment in an asset … from households to publicly invest in the old or the new technology. The three main results of the paper are that bubbles … directly access to less information than the investors; and that the central bank can eliminate bubbles by manipulating the …

We study the role of monetary policy when asset-price bubbles may form due to herd behavior in investment in an asset … from households to publicly invest in the old or the new technology. The three main results of the paper are that bubbles … directly access to less information than the investors; and that the central bank can eliminate bubbles by manipulating the …

second regime occurs, we say that the economy experiences a temporary bubble. We show the existence of temporary bubbles, and … we prove that cyclical equilibria may exist. In these equilibria, the economy experiences some periods without bubbles … and some periods with bubbles. We also show that monetary creation can be used in order to eliminate temporary bubbles. …

consider whether to rely on credit bubbles and to clean up after their explosion or to interfere and fight against financial …