Can asset price bubbles be detected? This survey of econometric tests of asset price
bubbles shows that, despite recent advances, econometric detection of asset price bubbles …

This study reviews the literature on the contribution of low inflation to economic growth and
the subsequent widespread adoption of inflation targeting as a monetary policy framework …

What risks do asset price bubbles pose for the economy? This paper studies bubbles in
housing and equity markets in 17 countries over the past 140 years. History shows that not …

This paper studies the welfare properties of competitive equilibria in an economy with
financial frictions hit by aggregate shocks. In particular, it shows that competitive financial …

Market-based credit has seen the most dramatic contraction in the current financial crisis.
Figure 4 plots the flow of new credit from the issuance of new asset-backed securities. The …

The recent global crisis has sparked interest in the relationship between income inequality,
credit booms, and financial crises. Rajan (2010) and Kumhof and Rancière (2011) propose …

In a market-based financial system, banking and capital market developments are
inseparable. We document evidence that balance sheets of market-based financial …

How should macroprudential policy be designed when policymakers also have access to
liquidity provision tools to manage crises? We show in a tractable model of systemic banking …

The question whether there is a trade-off between monetary and financial stability has been
one of the most interesting areas of research for central banking since many years …

The paper aims at deriving some stylised facts for financial, real, and monetary policy
developments during asset price booms. We observe various macroeconomic variables in a …