notice, is given to the source. Bubbles and Capital Flow Volatility: Causes and Risk Management

This is paper has been prepared for the 2005 Carnegie-Rochester Conference Series on Public Policy. We are grateful to Douglas Diamond, David Lucca, Roberto Rigobon, and the referee for their comments. Caballero thanks the NSF for financial support. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research