Asset Bubbles and Policy Responses:A Literature Review
Since the 2008 global financial crisis,asset bubbles have garnered significant attention from academic researchers and policymakers.Not only are they an academic frontier in macro-finance,but they also constitute a critical challenge for China's economic development.This paper conducts an extensive review of the latest literature on asset bubbles,summarising the theoretical frameworks and elucidating their origins and macroeconomic implications.We also investigate practical problems and policy implementation issues,offering a comprehensive comparison of the identification of asset bubbles,as well as the genesis and characteristics of three major asset bubbles:housing,equity,and bond bubbles.Moreover,we explore the interplay between asset bubbles,macroeconomic fluctuations,economic growth,and financial risk,discussing corresponding policy responses.