This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a … output comes from an unusual regime. -- Bubbles ; fiscal theory of the price level ; collateral constraints ; neutrality … asset bubbles can form which exactly offset a bubble in household liabilities. Surprisingly, evidence from a VAR using long …

This paper develops an equilibrium model of speculative bubbles that can be used to explore the role of various … policies in either giving rise to or eliminating the possibility of asset bubbles, e.g. restricting the use of certain types of …"This paper develops an equilibrium model of speculative bubbles that can be used to explore the role of various …