And everybody needs to work harder on understanding asset bubbles and what happens when they burst.
In many asset bubbles, prices are pushed up by greedy investors, who borrow heavily to buy.
Back in the mid-1980s, the country chose to reflate rather than deflate its asset bubbles.
While their economies are more complementary with Japan's than is Korea's, they are prone to asset bubbles.
Could the program help spur asset bubbles and set up a potential fall in the bond market?
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Regulators are playing hardball, some say maybe too hard, in their effort to prevent future asset bubbles.
Beijing has been trying to curb speculation in the property sector to prevent the formation of asset bubbles.
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Many of these asset bubbles have now burst in areas such as real estate and the stock market.
Recently everything has been about these emerging markets, and fears of either overheating or asset bubbles have subsided.
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However, the return journey from rampant inflation and asset bubbles always carries insolvency and defaults along for the ride.
But the return trip to a more normalized economy brings with it the bursting of debt and asset bubbles.
One reason was that asset bubbles and cheap credit eased life for everyone.
People like Steve Roach were worried about an economy based on asset bubbles leading to consumption bubbles that were unsustainable.
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Greenspan's failure is history now, but we should demand that the Fed take asset bubbles more seriously in the future.
Fears of formation of asset bubbles prompted the government to introduce various measures aimed at curbing speculation in the sector in 2010.
Kocherlakota implicitly denies the possibility that the economy could ever grow at a healthy pace without the stimulus provided by unsustainable asset bubbles.
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And inflation causes tremendous economic imbalances, as capital is diverted into ephemeral asset bubbles instead of being allocated in a more viable manner.
Low rates have encouraged excess borrowing, by both individuals and governments, and discouraged saving, fueling new asset bubbles at the expense of legitimate investment.
It is they who claimed it was impossible to spot asset bubbles, except in hindsight, despite systemic, irrational exuberance in property prices and stockmarkets.
In declaring victory, they overlooked the very nucleus of this past crisis: namely, the enormous debt levels and bubbling inflation that created fragile asset bubbles.
The fourth symptom of overheating, and one of the most important, is excessive credit expansion, which can lead to asset bubbles as well as inflation.
There are already concerns about overheating, rising inflation and asset bubbles.
Low rates make it more difficult for pensions to find yield, which potentially creates new asset bubbles by pushing dollars into other assets, including various alternative assets.
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Stocks are firing on all cylinders as ultra-low rates fuel risk-taking, which could get dangerous if asset bubbles go out of control, Bernanke said a few days ago.
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Foreign governments risk overheating and asset bubbles in their economies if they maintain inappropriately low interest rates in order to keep their currencies undervalued vs. the U.S. dollar.
Those in attendance at the two-day Central Economic Work Conference said pressures could arise from potential inflation and asset bubbles, meaning higher interest rates could be on the horizon.
Under the newly minted 2010 Dodd-Frank Act, the Commodity Futures and Trading Commission is chartered to monitor non-agricultural commodities trading, to promote transparency and to prevent asset bubbles.
In Crash Proof , I talked about how our economy suffered from the co-morbid diseases of asset bubbles, excessive debt and consumption, and insufficient savings, capital investment, and production.
The past couple of years have demonstrated that the use of monetary policy had its costs too, not in consumer inflation but in rising debt levels and growing asset bubbles.
The combination of state-led investment decisions in the emerging world and a parochial focus on price stability in the rich world produced serial asset bubbles rather than efficient capital allocation.
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