Sentences with phrase «bubble by raising interest rates»

[1] On the contrary, the commentator noted, the Fed could have slowed the bubble by raising interest rates and boosting margin requirements on stock trading during the tech bubble.

Not exact matches

For example, a reduction in capital inflows can deflate asset bubbles and so discourage consumption through wealth effects, or such a reduction can lower consumption by raising interest rates on consumer credit, or even by encouraging stronger consumer lending standards.

In 1845, the Bank of England tightened its monetary policy by raising interest rates, which has a tendency to pop economic bubbles as capital is no longer as cheap as it once was and now higher - yielding bonds become more attractive to investors again.

And thatâ $ ™ s with a standard bear market, such as the ones that follow a conscious decision by policy makers to raise interest rates and puncture an inflationary bubble.