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Financial Asset Bubble Theory

  • Harold L. Vogel
Chapter

Abstract

Financial asset price bubbles are not unique to any time or place. For at least the last 400 years they have been experienced in many different nations and cultures. And had extensive money and credit creation and recording systems existed in earlier times, we can surmise that bubbles would have occurred then too. Price bubble effects and artifacts have been seen in everything from stocks and bonds to tulip bulbs, real estate, gold, art, and all other types of commodities and asset classes. Yet there have often been relatively long periods without any important bubbles or crashes and other periods in which such episodes—in effect volatility clusters—have appeared rather frequently. The transition from tranquil to bubble-condition trading is always accompanied by availability of money and credit that is in excess of what is required in the conduct of GDP transactions.

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Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Harold L. Vogel
    • 1
  1. 1.New YorkUSA

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