The Macroeconomics of Credit and Asset Bubbles
Exploring Bubbles: Economic Impact, Business Cycles, and Policy Responses through Modeling
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In this course, we explore the nature of economic bubbles and their profound economic impacts from a macroeconomic perspective, focusing on their formation, effects, and how policymakers can manage and mitigate these financial phenomena.
Teaching Faculty
What are bubbles and their economic effects? How should policymakers respond? This course explores these questions from a macroeconomic perspective.
This Asset-focused program is intended for:
- Students, researchers, and practitioners aiming to understand the origins and macroeconomic impacts of bubbles.
Understand the nature of bubbles and analyze their economic impact
By the end of the course, participants will be able to:
- Define and identify credit and asset bubbles and their characteristics.
- Assess the macroeconomic effects of bubbles, particularly on business cycles.
- Build and utilize a workhorse model to evaluate bubbles’ impact on the economy.
- Understand how monetary policy should respond to asset bubbles.
- Understand the role of bubbles in driving credit booms and busts.
- Apply learned concepts to real-world scenarios and current economic debates.
Program Syllabus for The Macroeconomics of Credit and Asset Bubbles
What will you learn? Below is a brief outline of the topics covered in this course:
Course outline
- A review of the empirical evidence on bubbles.
- Introduction to the theory of rational bubbles.
- Credit and asset bubbles in business cycle models.
- Policy design (I): bubbles and monetary policy.
- Policy design (II): bubble, credit booms, and information depletion.
List of References
The following list may be useful when preparing for the course
Articles and Books
- Asriyan, V., L. Fornaro, A. Martin, and J. Ventura, Monetary Policy for a Bubbly World, Review of Economic Studies, forthcoming.
- Asriyan, V., L. Laeven, and A. Martin, Collateral Booms and Information Depletion, Review of Economic Studies, forthcoming.
- Abel, A., N. Mankiw, L. Summers and R. Zeckhauser, Assessing Dynamic Efficiency: Theory and Evidence, Review of Economic Studies, 1989.
- Carvalho, V., A. Martin and J. Ventura, Bubbly Business Cycles, American Economic Review, 2012.
- Gali, J., Monetary Policy and Bubbles in a New Keynesian Model with Overlapping Generations, American Economic Journal: Macroeconomics.
- Guerrón-Quintana, P., Hirano, T. and R. Jinnai, Recurrent Bubbles and Growth, Boston University mimeo, 2021.
- Hiraona, T., M. Inabab, and N. Yanagawa, Asset Bubbles and Bailouts, Journal of Monetary Economics, 2015
- Leroy, S., Rational Exuberance, Journal of Economic Literature, 2004.
- Martin, A. and J. Ventura, Theoretical Notes on Bubbles and the Current Crisis, IMF Economic Review, 2011.
- Martin, A. and J. Ventura, Economic Growth with Bubbles, American Economic Review, 2012.
- Martin, A. and J. Ventura, Managing Credit Bubbles, Journal of the European Economic Association, 2016.
- Martin, A. and J. Ventura, The Macroeconomics of Rational Bubbles: A User’s Guide, Annual Review of Economics, 2018.
- Tirole, J., Asset Bubbles and Overlapping Generations, Econometrica, 1985.
Why join our Summer School?
All BSE Summer courses are taught to the same high standard as our Master’s programs. Join us to:
Network with like-minded peers.
Study in vibrant Barcelona.
Learn from world-renowned faculty.
Admissions and requirements
Applicants must ensure they meet course requirements or verify eligibility with Admissions Counselors
Requirements
Summer School applicants normally demonstrate one or more of the following:
- A strong background in Economics or a field closely related to the course topic (Statistics, Law, etc.).
- Postgraduate degree or current Master’s/PhD studies related to the course topic.
- Relevant professional experience.
Requirements for Macroeconomics of Credit and Asset Bubbles course
- Basic modeling and econometric tools are recommended to benefit from the course materials fully.
- Basic knowledge of dynamic models is recommended.
Schedule
Here is your schedule for this edition of CREI Macroeconomics Summer School, Macroeconomics of Credit and Asset Bubbles course
Credits Transfers (ECTS)
ECTs are not available for this course.
Certificate of Attendance
Participants will receive a Certificate of Attendance free of charge. Participants will not be graded or assessed during the course.
Fees for 2025
Multiple course discounts are available, see more information about available discounts. Fees for courses in other Summer School programs may vary.
* Reduced Fee applies for PhD or Master’s students, Alumni of BSE Master’s programs, and participants who are unemployed.
FAQ’s
Need more information? Here are some commonly asked questions by participants. Any further queries, please contact our Admissions Team.
Is accommodation included in the course fee?
Accommodation is not included in the course fee. Participants are responsible for finding accommodation.
Are the sessions recorded?
Sessions will be recorded and videos will be available for a month once the course has finished.
How much does each Summer School course cost?
Fees for each course may vary. Please consult each course page for accurate information.
Are there any discounts available?
Yes, BSE offers a variety of discounts on its Summer School courses. See more information about available discounts or request a personalized discount quote by email.
Can I take more than one course?
Yes! you can combine any of the Summer School courses (schedule permitting). See the full course calendar.
Are there any evening activities during the course?
A social dinner will take place during the week for all participants, it is free to attend.
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Economics. All rights reserved.
