Bubbles lurk in government debt

In today’s FT you can found superb article by former IMF chief economist Kenneth Rogoff. Reading this article was a pleasant surprise for me as it is very rare for main stream economist to refer to reflexive bubbles. In the article Rogoff points out that that the real issue is not whether conventional economic theory can rationalize bubbles but the real issue is to detect bubbles. I reckon that without a good theory this task is impossible and I think that economist toolbox will be soon extended by out of equilibrium tools like LPPL.