The Wharton economists find the third cause of property bubbles in the trendy discipline of behavioural economics.
Property bubbles developed generating new tax income bubbles, which, in turn, were filtered into giant state expenditure bubbles.
But property bubbles have happened elsewhere (in Australia just lately, in fact).
The knock-on effect is forcing their currencies up against the dollar and the euro, hurting exports and creating property bubbles.
In the past, property bubbles were eventually pricked by higher interest rates.
It is also easy to imagine how the property bubbles might pop.
The newly-emerged Asian middle classes have now seen much of their wealth buried under mountains of bad debt or else destroyed as stockmarkets have crashed, currencies have lost value and property bubbles have burst.
They can lead to excessive lending and to bubbles in equity and property markets.
This money can then inflate speculative bubbles, especially in property.
Beijing has been trying to curb speculation in the property sector to prevent the formation of asset bubbles.
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Bubbles, they fret, are forming in property markets, inflationary pressure is building up and reforms needed to promote sustained growth (including measures to promote urbanisation) are not being carried out fast enough.
Meanwhile on the domestic front, it listed potential threats including rising property prices, which have triggered fears that new asset bubbles could form, along with "excessive off-balance sheet financing" by banks and local governments.
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At the moment the most worrying distortion is that the low return on bank deposits is fuelling asset-price bubbles as households seek higher returns by buying shares and property.
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What's more, the evidence suggests higher inflation is depressing growth by eating into consumer incomes while ultra-low interest rates are crushing savers and inflating new global asset-price bubbles ironically, including potentially in Canadian residential property.
It is they who claimed it was impossible to spot asset bubbles, except in hindsight, despite systemic, irrational exuberance in property prices and stockmarkets.
Last year, the government introduced moves to prevent asset bubbles from forming - including limits on the number of houses people can own, higher deposits and property taxes in select cities.
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