The international transmission of credit bubbles: theory and policy

Mostra el registre complet Registre parcial de l'ítem

• dc.contributor.author Martin, Alberto, 1974-ca
• dc.contributor.author Ventura, Jaumeca
• dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
• dc.date.accessioned 2017-07-26T12:07:59Z
• dc.date.available 2017-07-26T12:07:59Z
• dc.date.issued 2015-01-01
• dc.date.modified 2017-07-23T02:16:45Z
• dc.description.abstract We live in a new world economy characterized by financial globalization, historically low interest rates, and frequent credit booms and busts. To study this world, we extend the rational-bubbles framework of Martin and Ventura (forthcoming) to include many countries and general preferences. We find that financial globalization and low interest rates create an environment that is conducive to credit bubbles. These bubbles raise world savings and generate capital flows that may not be efficient. A global planner would adopt a policy of "leaning-against-investor-sentiment", taxing credit in those times and countries where credit is excessive and subsidizing it elsewhere. An important characteristic of this policy is that it is expectationally robust, in the sense that it isolates the world economy from fluctuations in investor sentiment. This policy may be hard to implement in a decentralized fashion, though, as individual countries are unlikely to internalize the effects of their policies on the world interest rate.
• dc.format.mimetype application/pdfca
• dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1465
• dc.identifier.citation Journal of Monetary Economics , 76, S37-S56, 2015
• dc.identifier.uri http://hdl.handle.net/10230/23088
• dc.language.iso eng
• dc.relation.ispartofseries Economics and Business Working Papers Series; 1465
• dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
• dc.rights.accessRights info:eu-repo/semantics/openAccess
• dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
• dc.subject.keyword financial globalization
• dc.subject.keyword international capital flows
• dc.subject.keyword sudden stops
• dc.subject.keyword credit bubbles
• dc.subject.keyword international policy coordination
• dc.subject.keyword Macroeconomics and International Economics
• dc.title The international transmission of credit bubbles: theory and policyca
• dc.type info:eu-repo/semantics/workingPaper