Economic Growth With Bubbles 8 8.1 Introduction and Motivation Afewyears ago the world economy was heavily hit by a severe negative shock to the global financial system. This triggered a worldwide slump in asset markets, numerous bankruptcies among well established companies, sharp increases in ...
" Economic growth with bubbles ," Economics Working Papers 848, Department of Economics and Business, Universitat Pompeu Fabra, revised Sep 2011. Jaume Ventura and Alberto Mart铆n, 2010. " Economic Growth with Bubbles ," Working Papers 445, Barcelona Graduate School of Economics. Alberto Martin ...
This paper presents a stylized model of economic growth with bubbles. This model views asset price bubbles as a market-generated device to moderate the effects of frictions in financial markets, improving the allocation of investments and raising the capital stock and welfare. It shows that, contra...
Kunieda, T.: Asset bubbles and borrowing constraints. J. Math. Econ. 44(2):112–131, the Conferences at Lawrence, Lisbon, New Haven, Rio de Janeiro and Taipei (2008) Martin, A., Ventura, J.: Economic growth with bubbles. Am. Econ. Rev. 102(6), 3033–58 (2012) Article Google Sc...
These theories argue that bubbles come from certain critical states on the market that originate from the communication of economic players. The aim of the article is to present a new theory explaining formation of economic bubbles based on Logistic growth models encountering the limited (financial,...
Bubbles are often on productive assets and occur in a sector of the economy. In addition, their occurence is often accompanied with credit booms. Incorporating these features, we provide a two-sector endogenous growth model with credit-driven bubbles. Bubbles have a credit easing e¤ect by relax...
Bubbles in equities markets and economies cause resources to be transferred to areas of rapid growth. At the end of a bubble, resources are moved again, causing prices to deflate. The Japanese economy experienced a bubble in the 1980s after the country's banks were partially deregulated.This ...
These theories argue that bubbles come from certain critical states on the market that originate from the communication of economic players. The aim of the article is to present a new theory explaining formation of economic bubbles based on Logistic growth models encountering the limited (financial,...
while maintaining domestic price stability and healthy economic growth has become widespread focus.This paper focuses on the lessons of Yen's appreciation and mainly discusses the exchange policy and asset bubbles.In the long run,as China's labor productivity relative increases,RMB will gradually ...
The common characteristic in catching- up economies in China and Japan is to implement export- oriented strategy through a set of distortions of system and policies,thus achieve the agglomeration of scarce factors of production and high speed of the economic growth. However,there are some historical...