Arbeitspapier
Leveraged Bubbles
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 all bubbles are alike. Some have enormous costs for the economy, while others blow over. We demonstrate that what makes some bubbles more dangerous than others is credit. When fueled by credit booms, asset price bubbles increase financial crisis risks; upon collapse they tend to be followed by deeper recessions and slower recoveries. Credit-financed housing price bubbles have emerged as a particularly dangerous phenomenon.
- Sprache
-
Englisch
- Erschienen in
-
Series: CESifo Working Paper ; No. 5489
Klassifikation
Wirtschaft
Semiparametric and Nonparametric Methods: General
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Financial Markets and the Macroeconomy
Money Supply; Credit; Money Multipliers
Financial Crises
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
Economic History: Financial Markets and Institutions: General, International, or Comparative
Semiparametric and Nonparametric Methods: General
Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
Financial Markets and the Macroeconomy
Money Supply; Credit; Money Multipliers
Financial Crises
Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: General, International, or Comparative
Economic History: Financial Markets and Institutions: General, International, or Comparative
Thema
boom
bust
bank lending
debt overhang
crises
local projections
bust
bank lending
debt overhang
crises
local projections
Ereignis
Geistige Schöpfung
(wer)
Jordà, Òscar
Schularick, Moritz
Taylor, Alan M.
Schularick, Moritz
Taylor, Alan M.
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2015
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:23 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Jordà, Òscar
- Schularick, Moritz
- Taylor, Alan M.
- Center for Economic Studies and ifo Institute (CESifo)
Entstanden
- 2015
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