It does, however, affect some of their macroeconomic effects. First, the behavior of the return to investment during bubbly episodes is reversed. Second, bubbly episodes can have long-run effects on economic growth. 5 Further issues and research agenda. We have developed a stylized model of economic growth with bubbles.
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It does, however, affect some of their macroeconomic effects. First, the behavior of the return to investment during bubbly episodes is reversed. Second, bubbly episodes can have long-run effects on economic growth. 5 Further issues and research agenda. We have developed a stylized model of economic growth with bubbles.