…core inflation and bubbles were developing. Ultimately, the Fed rate rose above the normalization rate of 4.3% to control inflation pressures and bubble imbalances. The economy went into recession for…

…inflation. That seems like a relatively pure case of a demand side reduction. We look at recessions that follow the bursting of bubbles. We look at other recessions not associated…

…happen, if real exchange rates don’t matter? But I can argue against this using the exact same argument Krugman makes about Iceland. I’d say that real estate bubbles and general…

…to maneuver as it has in prior recessions. The bubble story could be bad news, … Baker then argues that it is possible to detect bubbles and prevent them from…

…increased credit flows and asset bubbles in many countries, and culminated in an economic collapse of historic dimensions. The subsequent retrenchment of capital flows may be seen as a return…

…There has not been a recession since 2009.  There have been no bubbles and no crashes.  Nothing dramatic has happened and certainly nothing bad, even if lots of deep problems…

…cuts, Greenspan puts and banking deregulation. Here is a FRED graph close-up of the post 1995 asset bubbles: To make a long story short, think of wealth as capital. The…

…while the other set are the chartists or trend chasers, whose pursuit of bubbles as they rise and their dumping of assets when they fall tend to destabilize the market….

…familiar ? The price goes up to a peak around 100,000 times the initial price. It is stable for long periods and occasionally shoots up and crashes (you know bubbles)….

…random, it isn’t deliberately gerrymandered. But I want to go further much much further into cloud cookoo land. People like to stay in bubbles of like minded people (I sure…