Bubbles
in sentence
660 examples of Bubbles in a sentence
Instead, excess liquidity and fresh asset
bubbles
could emerge in the world’s financial and housing markets, impeding, if not torpedoing, growth.
Third, fusion also emits neutrons that will produce helium gas
bubbles
inside the wall material, which tends to explode.
The supporters of ITER explain that if the walls are porous, the
bubbles
can escape.
Trying to achieve 2% inflation in a context of such shocks, the BIS warns, would lead to excessively easy monetary policies, which would put upward pressure on prices of risk assets, and, ultimately, inflate dangerous
bubbles.
But continuing for much longer with unconventional monetary policies also carries the risk of undesirable asset-price inflation, excessive credit growth, and
bubbles.
This spurred an unsustainable consumption boom, as well as unwarranted risk-taking by consumers and financial institutions, which contributed to the large distortions and
bubbles
in global financial markets that were the preconditions for the current crisis.
A large minority of citizens in the developed world inhabits filter
bubbles
created by these platforms – digital false realities in which existing beliefs become more rigid and extreme.
Indeed, they are the only way for us to stop wasting trillions of dollars on financial bubbles, useless wars, and environmentally destructive forms of energy.
This requires ensuring the credibility and transparency of the accounting rules that define budget deficits and public debt, with closer monitoring also focusing on the development of asset bubbles, which cause deep recessions – and thus sharp increases in budget deficits – when they burst.
Likewise, the European Central Bank’s monetary policy should “lean against the wind” by paying more attention to the development of asset
bubbles.
Over the same 15-year period, financial markets have become unhinged, with a profusion of asset and credit
bubbles
leading to a series of crises that almost pushed the world economy into the abyss in 2008-2009.
This bubble, like all bubbles, will burst, triggering a much more severe crisis than that of 2008.
After a succession of bursting multi-trillion-dollar credit bubbles, you might wonder what to make of Robert Lucas’s view that rational expectations enable perfectly calculating “agents” to maximize economic utility.
First of all, it depends on whether countries can prevent financial
bubbles
from developing.
In the same report, the IMF rang alarm bells over potential equity bubbles, pointing out that “stock prices are currently above trend levels in most countries, with signs of stretched valuations in a few countries (Chile, Colombia, and Peru).”
Credit to the state sector ends up flowing not into productivity-enhancing investments, but into the housing market (fueling price bubbles) and industries with excess capacity (fueling even more overcapacity and enabling companies to avoid much-needed restructuring).
But economists (including me) who have worked on this kind of problem for five decades have found that price
bubbles
surrounding intrinsically worthless assets must eventually burst.
It does increase inequality and threaten asset bubbles, which could lead to a new financial crash.
When Interest Rates RiseCAMBRIDGE – Long-term interest rates are now unsustainably low, implying
bubbles
in the prices of bonds and other securities.
When interest rates rise, as they surely will, the
bubbles
will burst, the prices of those securities will fall, and anyone holding them will be hurt.
To the extent that banks and other highly leveraged financial institutions hold them, the bursting
bubbles
could cause bankruptcies and financial-market breakdown.
At this point, the extent of the stimulus seems very small, and the risk of financial
bubbles
is increasingly worrying.
Unfortunately, sometimes prices fail to perform this signaling function properly, as the dot-com and housing
bubbles
in recent years showed.
Why did the United States, with the most developed financial market in the world, experience two major
bubbles
in less than a decade?
So, too, are the wealth effects from a profusion of recent asset
bubbles.
Politicians are blamed because they did not tighten fiscal policies when needed in order to prevent property bubbles, rein in external deficits, and avert economic overheating.
Now, after the
bubbles
have burst, and the property market’s inevitable collapse has been followed by that of banks, public finances, and labor markets, the villains must be punished.
Alan Greenspan, the former Fed chairman, recently said that he now believes that speculative
bubbles
are important driving forces in our economy, but that, at the same time, the world’s monetary authorities cannot control
bubbles.
Thus, it would run no risk of inflating asset price
bubbles.
The repeated claim by shocked Clinton voters that no one they knew voted for Trump reveals the extent to which too many people – Republicans as well as Democrats – live in social, economic, informational, cultural, and communication
bubbles.
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