Economic bubble

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An economic bubble is an economic cycle characterized by rapid expansion followed by rapid contraction (the bursting of the bubble).[1] During the expansion period of a bubble, people often buy assets in the belief that they will necessarily be able to sell them at a profit. Examples include tulip mania, the dot-com bubble, and the housing bubble.

References

  1. Economic Bubbles: Understanding the role of bubbles in an economy
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