, and there are many papers on this important topic. The relationship between asset price bubbles, particularly in real …

. There is no uncertainty about economic fundamentals. Banking bubbles can emerge through a positive feedback loop mechanism …. Changes in household confidence can cause the collapse of bubbles, resulting in a financial crisis. Credit policy can mitigate … economic downturns but also incur an efficiency loss. Bank capital requirements can prevent the formation of banking bubbles by …

We provide a theory to investigate the implications of time-varying bailout policy for rational bubbles in an infinite …-horizon production economy. In particular, we ask two questions. First, should the government bail out asset bubbles? Second, if yes, how … bubbles are vulnerable to market sentiment and resource-consuming. The systematic risk of bubble bursting causes both asset …

We analyze the relationship between asset price bubbles and systemic risk, using bank-level data covering almost thirty … years. Systemic risk of banks rises already during a bubble’s build-up phase, and even more so during its bust. The increase …