Economists, observers, and policy‐makers often emphasize the role of sentiment as a
potential driver of the business cycle. In this paper, we provide three contributions to this …

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 …

This paper formalizes and quantifies the secular stagnation hypothesis, defined as a
persistently low or negative natural rate of interest leading to a chronically binding zero …

We provide a Keynesian growth theory in which pessimistic expectations can lead to very
persistent, or even permanent, slumps characterized by high unemployment and weak …

This paper investigates the emergence of carbon and green bubbles and their impacts on
macroeconomic performance and the environment, with a particular focus on identifying the …

This paper incorporates a bubble term in the standard Fiscal Theory of the Price Level
equation to explain why countries with persistently negative primary surpluses can have a …

I analyze an extension of the New Keynesian model that features overlapping generations of
finitely lived agents and (stochastic) transitions to inactivity. In contrast with the standard …

This article provides a self-contained overview of the theory of rational asset price bubbles.
We cover topics from basic definitions, properties, and classical results to frontier research …

I review the literature on financial speculation driven by belief disagreements from a
macroeconomics perspective. To highlight unifying themes, I develop a stylized …

We provide a model of rational bubbles in a DNK framework. Entrepreneurs are
heterogeneous in investment efficiency and face credit constraints. They can trade bubble …