Awaya, Yu; Iwasaki, Kohei; Watanabe, Makoto - In: Theoretical economics : TE ; an open access journal in … 17 (2022) 4, pp. 1559-1587
This paper develops a model of rational bubbles where trade of an asset takes place through a chain of middlemen. We … from the central bank has no effect on welfare with risk neutral agents. Middlemen are the source of financial fragility. …