Sentences with phrase «creating asset price bubbles»

Not exact matches

One person who pointed out the dangerous asset bubble developing in 2005 was economist Robert Shiller, whose composite Case - Shiller index, created in the 1990s, studies real estate prices nationally and in key urban areas.

Republican critics say they fear that by flooding the financial system with money, the Fed has inflated stock and real estate prices and could create asset bubbles that could pop with dangerous consequences for the 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.»

About the author: JS Kim is the Managing Director and Founder of SmartKnowledgeU, a fiercely independent research, consulting and education firm that focuses on gold and silver asset investment strategies as a means of countering the damaging effects of rapidly devaluing fiat currencies worldwide and price - distorted stock market and asset bubbles created by Central Bankers.

The key intuition is that, by creating a bubble in the market price, savers» demand for the housing asset for investment purposes imposes a negative externality on borrowers, who only demand the housing asset for utility purposes.

It has become easier to ride the wave of asset - price inflation — the stock market and real estate bubble — than to create new material means of production.

Monetary policy can drive up asset prices and create a bubble, Mr. Stiglitz said in an interview, «but consumption isn't going to go up.

An alternative view - I hope you and other readers will call out any holes in my reasoning: - Bubbles tend to be created when the price people are willing to pay become disconnected from the value of the underlying assets.

Alan Greenspan and the Federal Reserve kept interest rates too low for too long, stoking an asset price bubble and creating a leverage binge of epic proportions.