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Bubbles in sentence

660 examples of Bubbles in a sentence

Fearing domestic asset-price bubbles and upward pressure on their currencies from an inward rush of capital, many emerging-economy leaders complained loudly about what Brazilian Finance Minister Guido Mantega called an “international currency war.”
It stands to play an equally important role in driving the fight against inflation, asset bubbles, and deteriorating loan quality.
But, while the resulting surge in capital flows to emerging markets stimulated economic growth, it also inflated asset bubbles.
The fundamental problems that triggered alarm bells in the first place – including real-estate bubbles, local-government debt, rapid growth in shadow-banking activity, and rising corporate leverage ratios – remain unresolved.
When those price bubbles burst, households lost substantial wealth and financial markets became dysfunctional.
It may pile up in bank reserves or savings accounts, or it may produce asset bubbles.
Raising interest rates on bank deposits, which are now negative in real terms, would reduce incentives for individuals to pour money into equity markets or real estate, mitigating the risk of asset market bubbles and boom-bust cycles in the economy.
Bubbles do not arise out of thin air.
The Fed’s policy of quantitative easing exacerbates the flow of excess liquidity, which could result in dangerous bubbles in emerging markets.
As a result, outsize gains in asset markets – and the related risks of new bubbles – are needed to make a meaningful difference for the real economy.
But, over time, the longer central banks create liquidity to suppress short-run volatility, the more they will feed price bubbles in equity, bond, and other asset markets.
Macro liquidity is feeding booms and bubbles; but market illiquidity will eventually trigger a bust and collapse.
Zero or negative real interest rates, when they become quasi-permanent, undermine the efficient allocation of capital and set the stage for bubbles, busts, and crises.
A coordinated and well-timed policy package could boost global growth, improve capital allocation, support a more equitable income distribution, and reduce the danger of speculative bubbles.
Indeed, the academic literature was chock-full of models of financial bubbles, asymmetric information, incentive distortions, self-fulfilling crises, and systemic risk.
True, easy money did help to restore equity prices, but it might also have created new asset bubbles.
Only a few observers dared to point out that this rapid reversal was the result of credit bubbles fueled by carry-trade operations hatched in overly liquid centers of global capitalism.
Our book shows that deflating asset bubbles, particularly in housing markets, pose a serious danger to the financial system.
Stopping financial bubbles is difficult.
Acting early and aggressively to protect the system once the bubbles start deflating would help contain future crises.
Bubbles can persist for decades (think of real-estate prices in fashionable cities) or just minutes (as in hard-to-justify intraday fluctuations).
This should blunt the macroeconomic impact of bursting bubbles.
Saving imbalances can also lead to destabilizing international capital flows, asset bubbles, and financial crises.
The asset and credit bubbles fueled by those imbalances brought the world to the brink of an abyss not seen since the 1930s.
As former US Federal Reserve Chairman Ben Bernanke put it, if only countries like China had spent more, the bubbles that nearly broke America would not have formed in the first place.
In democracies like the United States, the concern is that tech companies will continue to exacerbate political and social polarization by facilitating the spread of disinformation and creating ideological “filter bubbles,” leading to something resembling Aldous Huxley’s Brave New World.
Bubbles without MarketsNEW HAVEN - A speculative bubble is a social epidemic whose contagion is mediated by price movements.
In fact, speculative bubbles are just one example of social epidemics, which can be even worse in the absence of financial markets.
Some examples of social epidemics unsupported by any speculative markets can be found in Charles MacKay’s 1841 best seller Memoirs of Extraordinary Popular Delusions and the Madness of Crowds.The book made some historical bubbles famous: the Mississippi bubble 1719-20, the South Sea Company Bubble 1711-20, and the tulip mania of the 1630’s.
Some might object that these events were not really social epidemics like speculative bubbles, because a totalitarian government ordered them, and the resulting deaths reflect government mismanagement more than investment error.
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