Examples of using Asset bubbles in English and their translations into German
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Asset bubbles are hard to identify with certainty.
On the contrary, it promises more asset bubbles, financial crises, and Japanese-style secular stagnation.
According to Stein, only monetary policy(higher policy interest rates)“getsin all of the cracks” of the financial system and prevents asset bubbles.
Fifth, persistent QE can lead to asset bubbles both where it is implemented and in countries where it spills over.
Likewise, the European Central Bank's monetary policyshould“lean against the wind” by paying more attention to the development of asset bubbles.
Stricter financial regulation can help contain future asset bubbles and reduce macroeconomic imbalances.
Second, controlling asset bubbles requires control not only of the money supply, but also of the availability of credit.
It seems that the digital advertising sector is not affected by debt issues, asset bubbles, political tensions and slower economic growth.
Today's low interest-rate environment is causing a flood of financial flows to emerging economies,raising the risk of inflation and asset bubbles.
Because financial markets are prone to create asset bubbles, regulators must accept responsibility for preventing them from growing too big.
According to this school of thought,excessive savings pushed long-term interest rates down to rock-bottom levels, leading to asset bubbles in the United States and elsewhere.
Not only do they repeatedly generate destabilizing asset bubbles, but, when demand weakens, forces that exacerbate the downturn come into play.
In Britain, economic growth is even slower, while inflation is much higher.And these countries' QE has also fueled asset bubbles in the world economy.
Instead, excess liquidity and fresh asset bubbles could emerge in the world's financial and housing markets, impeding, if not torpedoing, growth.
Strong financial-market supervision will also be needed tocontain risks stemming from credit booms, asset bubbles, and financial-market volatility.
From asset bubbles and a dysfunctional financial system to currency suppression and monetary-policy blunders, Japan has been in many respects the laboratory of our future.
So, even in the so-called boom years, most Western economies werekept afloat not by new investment, but by asset bubbles based on increasingly unsustainable leverage.
These asset bubbles were inflated by lax lending standards and an excessive willingness to borrow, which seemed similar to the Greek government's willingness to take on debt to pay lavish pensions.
As Premier Wen Jiabao recently emphasized, China must now undertake comprehensive measures to control mounting inflation,growing asset bubbles, and an overheating economy.
With credit and asset bubbles slowly but surely reappearing, the authorities' goal should be to keep growth on a balanced and sustainable path- and thus to discouraging excessive risk taking.
But the likelihood of another crisis is quite small, and its adverse impact would be far less devastating this time around,as there are no more massive credit or asset bubbles to burst.
The government increasingly tightened its policies as theeconomy continued to surge ahead due to asset bubbles, high local-government investment spending, and buoyant demand in global markets for Chinese goods.
Moreover, unlimited quantitative easing by the Bank of Japan, the Federal Reserve, and the European Central Bank alsoincreases the risk of volatile capital flows and asset bubbles in Asian emerging economies.
True, low interest rates, together with a second round of quantitative easing, are causing considerable global distortions, as funds flow into fast-growing emerging markets,fueling inflationary pressure and asset bubbles.
While cross-border capital flows and interest and exchange rates must be liberalized to maintain economic development,such reforms raise the risk of asset bubbles if implemented under distorted benchmark prices.
This is effective in stemming upward exchange-rate pressure, but it feeds the beast: it exacerbates overheating in already fast-growing emerging markets, causing inflation and leading to excessive credit growth,which can fuel dangerous asset bubbles.
A sixth option- especially where a country has carried out partially sterilized intervention to prevent excessive currency appreciation-is to reduce the risk of credit and asset bubbles by imposing prudential supervision of the financial system.
Emerging markets know this, and are upset- Brazil has vehemently expressed its concerns- not only about the increased value of their currency,but that the influx of money risks fueling asset bubbles or triggering inflation.
Some at the Fed- Chairman Ben Bernanke and Vice Chair Janet Yellen- argue that policymakers can pursue both goals: the Fed will raise interest rates slowly to provide economic stability(strong income and employment growth and low inflation)while preventing financial instability(credit and asset bubbles stemming from high liquidity and low interest rates) by using macro-prudential supervision and regulation of the financial system.
But the concentration of income at the top- more than 90% of the gains from US economic growth in 2011, for example, went to the top 1%- is constraining broad-based recovery and leaving macroeconomic policy caught between the need for continued“stimulus” andthe dangers of growing public debt and asset bubbles inflated by record-low interest rates.