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 …

When limited commitment hinders unsecured credit, assets help by serving as collateral. We study models where assets …-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …

When limited commitment hinders unsecured credit, assets help by serving as collateral. We study models where assets …-pricing theory, is calibrated to analyze the effects of monetary policy and financial innovation. We show that inflation can raise …

general equilibrium in finite-horizon economy with heterogeneous agents and collateral constraints. There are two assets in … the economy which can be used as collateral for short-term loans. For the first asset the margin requirement is … presence of collateral constraints leads to strong excess volatility. Thus, a regulation of margin requirements may have …