Economic bubble

From Conservapedia
This is an old revision of this page, as edited by DavidE (Talk | contribs) at 15:17, 19 May 2011. It may differ significantly from current revision.

(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to: navigation, search

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