This review provides a guide to macroeconomic applications of the theory of rational
bubbles. It shows that rational bubbles can be easily incorporated into standard …

Predicting the success of a business venture has always been a struggle for both
practitioners and researchers. However, thanks to companies that aggregate data about …

The sustained rise in US current account deficits, the stubborn decline in long-run real rates,
and the rise in US assets in global portfolios appear as anomalies from the perspective of …

We develop a stylized model of economic growth with bubbles in which changes in investor
sentiment lead to the appearance and collapse of macroeconomic bubbles or pyramid …

ABSTRACT I construct a model in which infinitely-lived entrepreneurs cannot borrow more
than the value of their collateral holdings. I show how this constraint leads naturally to an …

The External Balance Assessment (EBA) methodology has been developed by the IMF's
Research Department as a successor to the CGER methodology for assessing current …

We investigate the possibility that the large current account deficits of the US are the
outcome of optimizing behavior. We develop a simple long-run world equilibrium model in …

How does financial integration impact capital accumulation, current-account dynamics, and
cross-country inequality? We investigate this question within a two-country, general …

Abstract hypothesised that a 'global savings glut'was causing large trade imbalances.
However, we show that the global savings rates did not show a robust upward trend during …

This paper analyses the role of asset prices in comparison to other factors, in particular
exchange rates, as a driver of the US trade balance. It employs a Bayesian structural VAR …