General Definition of an Economic Bubble An economic bubble is formed when central banks hold interest rates artificially low, resulting in over-priced assets, such as stocks, bonds, and real estate, a miss allocation of resources, excess speculation, consumption and borrowing, and insufficient savin...
perform an important stabilizing function, because they allow the private sector to net save. Given that during a recession there is a sharp increase in uncertainty and insecurity, the private sector desires to spend less than its income which translates into a rising personal saving rate. In the...
aChina has a massive real estate bubble so it has to borrow huge amounts of cash to paper over its economic shortcomings. The central government in Beijing isn't going to admit its books are so cooked that you can't tell what they originally were. 中国有巨型的不动产的泡影,因此它必须...
the US Government can issue whatever financial resources it needs to carry out its obligations without raising any solvency issues. The only problems involved in carrying out these obligations are problems of political will, not problems of financial incapacity, which is why, from an economic point...
A housing bubble is an economic situation ___ occurs when house prices rise much too fast. A . which B . where C . what D . why
When one discusses the fluctuations known as the business cycle, it is important to remember that one is talking about general, or economy-wide, fluctuations and not fluctuations that are specific to one geographic region or industry within an economy. One is talking about fluctuations in output,...
I suppose that someone has to create such drivel. The formulas were based on an Apples and Bananas economic model. Unfortunately the real world is a bit more complex. The bottom line from Mr. K is that bubbles of any kind don’t create a threat to employment provided that the Fed provid...
A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst." Typically, a...
An assetbubbleis an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This steep price rise typically is followed by a rapid decrease in value, or a contraction, when the bubble bursts. Bubbles are usually only identified and stu...
The bubble theory is any economic or financial theory that recognizes the existence of or seeks to explain bubbles in market prices. Prices of any asset can get much higher than apparent values warrant from time to time, but how long the bubble will last may be difficult to predict or even...