Theoretical notes on bubbles and the current crisis
By: Alberto Martin, Jaume Ventura
Contributors: Ventura, Jaume; National Bureau of Economic Research
Series: NBER working paper series -- working paper 16399; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 16399.
Publisher: National Bureau of Economic Research
Published: 2010
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "We explore a view of the crisis as a shock to investor sentiment that led to the collapse of a bubble or pyramid scheme in financial markets.  We embed this view in a standard model of the financial accelerator and explore its empirical and policy implications.  In particular, we show how the model can account for: (i) a gradual and protracted expansionary phase followed by a sudden and sharp recession; (ii) the connection (or lack of connection!) between financial and real economic activity and; (iii) a fast and strong transmission of shocks across sectors and countries.  We also use the model to explore the role of fiscal policy"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 12/16/2010.

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.