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bubbles. For this we posit an overlapping generation model where productivity and credit supply are subject to random shocks …. We find that when real interest rates are lower than the rate of growth, credit financed bubbles may be welfare improving …
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Recently, convincing evidence has been presented that the recession in the wake of the recent financial crisis resulted primarily from an overly levered housing sector that was forced to deleverage and cut consumption spending when faced with collapsing housing prices. Following this...
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This paper analyzes the effects of several policy instruments to mitigate financial bubbles generated in the banking … policy instruments in counteracting financial bubbles. We find that an endogenous capital requirement reduces the impact of a …
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This paper analyzes the effects of several policy instruments for mitigating financial bubbles generated in the banking … evaluate the efficacy of several policy instruments in counteracting financial bubbles. We find that an endogenous capital …
Persistent link: https://www.econbiz.de/10012858317