Abstract

Andy Haldane, Anil Kashyap, Chris Sims, and seminar participants at Princeton University, the Swedish Riksbank conference on macro-prudential regulation, and Danmarks Nationalbank for helpful comments. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.