It appears that many boom-bust cycles are driven by linkages between the credit market and asset prices. Recently, in addition to credit, bonds and stocks, new complex securities have been developed, e.g., MBS, CDO and CDS, that act as instruments of financial intermediation and evaluation of...

Asset Prices, Booms and Recessions"" is a book on Financial Economics from a dynamic perspective. It focuses on the dynamic interaction of financial markets and economic activity. The financial markets to be studied here encompasses the money and bond market, credit market, stock market and...

In this paper we set up a baseline, but nevertheless advanced and complete model representing detailed goods market dynamics, heterogeneous labor markets, dual and cross-dual wage-price adjustment processes, as well as counter-cyclical government policies. The cyclical movements of output...