…speculative bubbles in which agents assume some asset price will increase because it has in the past. This is one of they key features of the data. It is possible…

…assets have liquidity directly from the low interest rates and low labor share. A negative natural real interest rate would imply an economy pledged to feeding asset bubbles as its…

…the need for bubbles, I came up against this great line from Nick Rowe (April 2011): The economy wants a Ponzi scheme. I’ve been pondering that line ever since. (As…

…their policymakers allowed the inflows to contribute to credit bubbles that resulted in inflation and current account deficits, which are significant drivers of the volatility. Moreover, the Federal Reserve is…

…1995 through 2008 then lower than predicted investment since the trough in 2009. This very much fits the story of two speculative bubbles (.com stuff then houses) followed by deleveraging….

…a giant sucking sound as “quantitative easing” money gets withdrawn from emerging markets, and there are alarming signs that debt bubbles in some of those markets may be about to…

…markets. The resulting rise in asset prices pulls funds away from the financing of agriculture and small firms, hurting farmers and workers in traditional sectors. Eventually, the asset bubbles break,…

…there far to the right. Paul Krugman talked about Sweden raising the interest rate to battle bubbles. Let’s look at the interest rate in Sweden. Yes, they certainly raised the…

…production of manufacturing goods, asset bubbles, etc. “On the demand side of the economy, however, and especially considering household consumption, one gets a very different view – monetary expansion seemed…

…confident that they could identify price bubbles before they collapsed, but that they could always deal with the byproducts of a bout of speculation. The global financial crisis undercut that…