on prices, risk premia, asset price bubbles, and financial stability. Bubble risk premia arise from an interaction … adjusted risk and bubble risk premia increase. We propose a new framework for monetary policy with respect to bubbles. What …/pessimists). Accommodative policy can lead to a larger fraction of trading constrained agents that disagree, larger bubbles, and increased …

asset pricing in line with rational bubbles. We show that the response of the excessive stock price component to a monetary …

, abnormally high asset prices can be caused by financial bubbles. In this model, bubbles can emerge and deflate both in cycles or … rate. This can lead to new stable equilibria, but the emergence and bursting of bubbles cannot be prevented. …

the working of the instruments is demonstrated and analyzed. It is shown that in theory both instruments are able to … suitable for the task of tackling asset price bubbles. -- Monetary Policy ; Banking Regulation ; Asset Prices ; Bubbles …

that the macroprudential policy should optimally respond to building asset price bubbles non-monotonically depending on the …

of restrictive monetary policy shocks coincides with the phase of the business cycle in which bubbles arise …

We show that the interplay between endogenous limited participation and credit lines creates asset price bubbles in a … least as well off. Optimal liquidity is found to be consistent with the existence of bubbles in stock and bond markets under … emergence of bubbles on stock prices that is tied to the direction of liquidity needs and the allocation of risk across …