. Private assets are used as collateral and come in heterogeneous quality. Financial fragility is the probability that a large …

for all participating nations which is Pareto improving. Since collateral requirements are calculated on individual risk … capital market. We also discuss institutional issues of possible implementations. …

output comes from an unusual regime. -- Bubbles ; fiscal theory of the price level ; collateral constraints ; neutrality …This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a … lender such as a government, central bank, or banking sector is willing to lend infinitely against collateral, explosive …