Sentences with phrase «explain asset bubbles»
Shiller is right that perfect equilibrium microeconomics can not explain asset bubbles, but bubbles might be explained by combining three other classic postulates: the law of demand, opportunity costs and the subjective theory of value.
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Even if economists and the Fed chairperson struggle to identify them, there are plausible reasons to explain why asset bubbles last so long.
The greater fool theory can help to explain how speculative bubbles are formed in different assets.
That difference of opinion may partly be explained by understanding what type of asset bubble bitcoin could be.
Speaking with CNBC, McNamee — an early Facebook investor — explained that next year will be crucial in determining whether bitcoin's ascent is sustainable over the long - term or whether it will prove to be a short - term asset bubble.