Managing Credit Booms and Busts: A Pigouvian Taxation Approach
---- Acknowledgements -----
The authors would like to thank David Cook, C. Bora Durdu, Enrique Mendoza, Raoul Minetti, Joseph Stiglitz and Dimitri Vayanos as well as participants at seminars at the FRB and at JHU and at the Dallas Fed/Bank of Canada conference on Capital Flows, an IMF Workshop on Systemic Risk, the 2nd Tilburg Financial Stability Conference and the Paul Woolley Conference on Capital Market Dysfunctionality for helpful comments and suggestions. Financial support from the Europlace Institute of Finance is gratefully acknowledged. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.