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CREI - Macroeconomics

The Macroeconomics of Credit and Asset Bubbles

Exploring bubbles: Economic impact, business cycles, and policy responses through modeling.

10h (5 days)

€675 - €1,175

Face-to-face

English

Program date: June 30 - July 4, 2025

Application deadline: June 23, 2025

Learn more

The Macroeconomics of Credit and Asset Bubbles

Applications for 2025 Summer School programs are now open!

Summer school

CREI - Macroeconomics

The Macroeconomics of Credit and Asset Bubbles

Course Overview

What are bubbles? What are their effects on the economy? How should policymakers deal with them? In this course, we address these questions from a macroeconomic perspective. We first review the stylized evidence on credit and asset bubbles. We then develop a workhorse model to think about bubbles and their macroeconomic effects. In particular, we focus on the effects of credit and asset bubbles on business cycle models. We conclude by using the model to shed light two key debates regarding bubbles:

(i) How should monetary policy respond to asset bubbles?

(ii) What roles do bubbles play in driving credit booms and busts?

This course is intended for students, researchers and practitioners who want to become familiar with the state of knowledge on the origins and macroeconomic effects of bubbles.

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:

1

Network with like-minded peers

2

Study in vibrant Barcelona

3

Learn from world-renowned faculty

Admissions and Requirements

Applicants must ensure they meet course requirements or verify eligibility with Admissions Counselors.

Program date: June 30 - July 4, 2025

Application deadline: June 23, 2025

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.

Time

30

mon

1

tue

2

wed

3

thu

4

fri

9:00 - 11:00

Lecture

Credits Transfers (ECTS)

ECTS are not available for this course

Certificate of Attendance

Participants who attend more than 80% of the course will receive a Certificate of Attendance, free of charge.

Fees

Multiple course discounts are available, see more information about available discounts. Fees for courses in other Summer School programs may vary.

Course

The Macroeconomics of Credit and Asset Bubbles

Modality

Total Hours

Regular Fee

Reduced Fee*

Course

The Data Economy: Tools and Applications

The Macroeconomics of Credit and Asset Bubbles

Numerical Methods for Fiscal and Monetary Policy Analysis

Climate Change, Firms, and the Green Transition

Quantitative Methods for Spatial Economics

Sovereign Debt Crises: Theory, Evidence and Policy

POLICYMETRICS: Econometrics for Macroeconomic Policy Making

Modality

Face-to-face

Total Hours

10

15

10

15

ECTS

0

Regular Fee

1,175€

1,375€

Reduced Fee*

675€

775€

* Reduced Fee applies for PhD or Master’s students, Alumni of BSE Master’s programs, and participants who are unemployed.

FAQ

Need more information? Here are some commonly asked questions by participants. Any further queries, please contact our Admissions Team.

Can I see the full Summer School calendar?

You can view the full Summer School calendar here.

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 NOT be recorded; however, the materials provided by the professor will be available for a month after 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.