Bubble (economics)/Definition: Difference between revisions

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imported>David E. Volk
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A surge in prices that raises irrational expectations of further increases, so generating  further increases, and so on: a process that continues until confidence falters, the bubble "bursts" and prices suddenly  revert to a rationally-based level.
A surge in prices that raises expectations of further increases, so generating  further increases, and so on: a process that continues until confidence falters, the bubble "bursts" and prices suddenly  revert to an objectively-based level.

Revision as of 10:28, 1 December 2009

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Bubble (economics) [r]: A surge in prices that raises expectations of further increases, so generating further increases, and so on: a process that continues until confidence falters, the bubble "bursts" and prices suddenly revert to an objectively-based level.