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Bubbles in sentence

660 examples of Bubbles in a sentence

The normal response of emerging-market central banks to bubbles or inflation would be to raise interest rates – thereby increasing their currencies’ value still more.
There was always uncertainty over the extent to which central banks should attempt to correct or limit asset-price bubbles when there was no corresponding rise in the general level of inflation.
The Fed and the Bank of England remain less likely to be concerned about the emergence of new kinds of asset bubbles in stock markets or commodities.
With the benefit of hindsight, we now know that the 12-year pre-crisis US consumer-spending binge was built on a precarious foundation of asset and credit bubbles.
When those bubbles burst, consumers were left with a massive overhang of excess debt and subpar saving.
Some argue that China needs to adjust its exchange rate to prevent inflation or bubbles.
According to this school of thought, excessive savings pushed long-term interest rates down to rock-bottom levels, leading to asset bubbles in the United States and elsewhere.
From 2009 to 2011, with advanced economies pursuing near-zero interest rates and quantitative easing, yield-hungry investors flooded countries like South Korea and Brazil with hot money, fueling currency appreciation and inflating asset bubbles.
Real-estate bubbles can be contained through regulatory means, such as loan-to-value or loan-to-income ceilings for housing loans.
As a result, any reform of regulation and supervision will fail to control bubbles and excesses unless several other fundamental aspects of the financial system are changed.
The second item on the agenda is a pull-back from quantitative easing in the US, which is subjecting the emerging economies to a flood of capital, rising commodity prices, inflation, and asset bubbles.
Even low positive interest rates, if maintained for a prolonged period, could backfire, fueling asset bubbles and enabling household and corporate debt to grow to unsustainable levels.
Large capital inflows led to overheating and inflation, asset-price bubbles, and rapid currency appreciation.
Countries like Spain, Greece, and Ireland developed real-estate bubbles, grew faster, and developed trade deficits with the rest of the eurozone, while Germany – weighed down by the costs of reunification – reined in its labor costs, became more competitive and developed a chronic trade surplus.
When Europe and the United States challenged this mercantilist approach with the 1985 Plaza Accord, the Bank of Japan countered with aggressive monetary easing that fueled massive asset and credit bubbles.
The bubbles burst, quickly bringing down Japan’s unbalanced economy.
With productivity having deteriorated considerably – a symptom that had been obscured by the bubbles – Japan was unable to engineer a meaningful recovery.
Bubbles and structural imbalances were not seen as the problem.
As the baton of excessive liquidity injections is passed from one central bank to another, the dangers of global asset bubbles and competitive currency devaluations intensify.
On the contrary, it promises more asset bubbles, financial crises, and Japanese-style secular stagnation.
We could also witness the return of asset-price bubbles in some sectors, especially real estate, if QE continues.
Moreover, the negative consequences of tightening monetary conditions in developed countries will likely become more severe, given the disconnect between asset bubbles and recoveries in the real economy.
Back to Housing BubblesNEW YORK – It is widely agreed that a series of collapsing housing-market bubbles triggered the global financial crisis of 2008-2009, along with the severe recession that followed.
While the United States is the best-known case, a combination of lax regulation and supervision of banks and low policy interest rates fueled similar bubbles in the United Kingdom, Spain, Ireland, Iceland, and Dubai.
Now, five years later, signs of frothiness, if not outright bubbles, are reappearing in housing markets in Switzerland, Sweden, Norway, Finland, France, Germany, Canada, Australia, New Zealand, and, back for an encore, the UK (well, London).
In emerging markets, bubbles are appearing in Hong Kong, Singapore, China, and Israel, and in major urban centers in Turkey, India, Indonesia, and Brazil.
In most advanced economies, bubbles are being inflated by very low short- and long-term interest rates.
With central banks – especially in advanced economies and the high-income emerging economies – wary of using policy rates to fight bubbles, most countries are relying on macro-prudential regulation and supervision of the financial system to address frothy housing markets.
To be clear, macro-prudential restrictions are certainly called for; but they have been inadequate to control housing bubbles.
But the global economy’s new housing bubbles may not be about to burst just yet, because the forces feeding them – especially easy money and the need to hedge against inflation – are still fully operative.
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