Document Type
Discussion Paper
Publication Date
7-1-2009
CFDP Number
1715
CFDP Pages
54
Abstract
Equilibrium determines leverage, not just interest rates. Variations in leverage cause fluctuations in asset prices. This leverage cycle can be damaging to the economy, and should be regulated.
Recommended Citation
Geanakoplos, John, "The Leverage Cycle" (2009). Cowles Foundation Discussion Papers. 2033.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/2033