This paper proposes and tests a theory of credit-driven asset bubbles which are neutral in their real effects. When a … asset bubbles can form which exactly offset a bubble in household liabilities. Surprisingly, evidence from a VAR using long …-run restrictions supports the idea that asset bubbles are approximately neutral in their real effects before 2007. The evidence becomes …

transformation of the economy. Today’s crisis is rooted in what he called “money manager capitalism,” the current stage of capitalism … rises. Perhaps this will prove to be the end of this stage of capitalism–the money manager phase. Of course, it is too early … even to speculate on the form capitalism will take. I will only briefly outline some policy implications. -- Hyman Minsky …