Leverage and Asset Bubbles: Averting Armageddon with Chapter 11?
---- Acknowledgements -----
We thank seminar and conference participants for their comments, especially John Driffill, Sayantan Ghosal, Peter Hammond, Anton Korinek, Chris Kubelec, Michael McMahon, Tomo Ota, Herakles Polemarchakis, Mathan Satchi, David Vines and Lei Zhang. Miller is grateful for the opportunity provided by a Houblon Norman Fellowship to work on this topic at the Bank of England; Han Hao Li and Ashwin Moheeput are thanked for research assistance. The views expressed are those of the authors, however, and not necessarily those of the Bank of England or the National Bureau of Economic Research.