This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

Publisher Summary This chapter presents a critical survey and an interpretation of recent
exchange rate research. It focuses on empirical results for exchange rates among major …

(la)[X+]= A [t+ yZt, Xt= 0= Xo, tpt+ l Pt where X is an (nx 1) vector of variables predetermined
at t; P is an (mx 1) vector of variables non-predetermined at t; Z is a (kx 1) vector of …

The first part of this paper considers the interaction between productive and nonproductive
savings in a growing economy. It employs an overlap** generations model with capital …

Alan S. Blinder offers the dual perspective of a leading academic macroeconomist who
served a stint as Vice-Chairman of the Federal Reserve Board—one who practiced what he …

We construct a pair of linear examples to study the collapse time of a fixed exchange-rate
regime. The first example is a perfect-foresight, continuous-time model which allows …

This paper seeks to distinguish empirically between two views on the limitations of
government borrowing. According to one view, nothing precludes the government from …

A recursive test procedure is suggested that provides a mechanism for testing explosive
behavior, date stam** the origination and collapse of economic exuberance, and …

This chapter explores the core construct of financialization. The chapter focuses on the US
economy, which is where financialization seems to be most developed. However, judging by …

This paper considers the possibility of static and dynamic speculation when traders have
rational expectations. Its central theme is that, unless traders have different priors or are able …