Economic bubble

(redirected from Speculative bubbles)

Economic bubble

A market phenomenon characterized by surges in asset prices to levels significantly above the fundamental value of that asset. Bubbles are often hard to detect in real time because there is disagreement over the fundamental value of the asset.
References in periodicals archive ?
Ricardo Lagos, New York University and NBER, and Shengxing Zhang, London School of Economics, "Monetary Exchange in Over-the-Counter Markets: A Theory of Speculative Bubbles, the Fed Model, and Self-Fulfilling Liquidity Crises"
The Abu Dhabi and Dubai stock markets have dropped sharply in the past several months as the slide in global oil prices has burst speculative bubbles in equities.
Al Shirawi, chief executive officer of Securities & Investment Company, added: "Despite the GCC equities sell-off during June amid worries about speculative bubbles and the overheated property sector in Dubai, net profit for the first six months rose by 166 per cent to 5.
UAE and Qatar markets declined in June, as speculative bubbles deflated stocks.
Markaz said, "the UAE and Qatar markets declined in June, as speculative bubbles deflated stocks.
We no longer recognize this world in which we live, the terrible and selfish people who live in speculative bubbles and do not respect the peoples of the nations.
According to analysts, low interest rates, a rebounding economy and speculative bubbles could put more pressure on the bank to raise rates.
Minsky's theories emphasised the macroeconomic dangers of speculative bubbles in asset prices; and that brings us to the end-game, stage three.
Markets have undergone dramatic crashes and they display speculative bubbles with market prices far removed from their equilibrium values.
The new mortgage caps along with continued caution should help keep potential speculative bubbles at bay.
The authors deploy a recently developed methodology for identifying potential speculative bubbles in real time, an approach that may assist in constructing early warning systems in future.