Difference between revisions of "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).<ref>[http://csinvestor.com/investing-guide/economic-bubbles/ Economic Bubbles: Understanding the role of bubbles in an economy]</ref> During the expansion period of a bubble, people often buy assets in the belief that they will necessarily be able to sell them [[Greater Fool Theory|at a profit]]. Examples include [[tulip mania]], the [[dot-com bubble]], and the [[housing bubble]]. | + | An '''economic bubble''' is an [[economic]] cycle characterized by rapid expansion followed by rapid contraction (the bursting of the bubble).<ref>[http://csinvestor.com/investing-guide/economic-bubbles/ Economic Bubbles: Understanding the role of bubbles in an economy]</ref> During the expansion period of a bubble, people often buy [[assets]] in the belief that they will necessarily be able to sell them [[Greater Fool Theory|at a profit]]. Examples include [[tulip mania]], the [[dot-com bubble]], and the [[housing bubble]]. |
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==References== | ==References== | ||
<references/> | <references/> | ||
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| + | ==See Also== | ||
| + | * [[Housing bubble]] | ||
| + | * [[Subprime loans]] | ||
| + | * [[Federal Reserve Bank]] | ||
| + | * [[National debt]] | ||
| + | * [[Treasury bill]]s | ||
| + | * [[Quantitative easing]] | ||
| + | * [[Inflation]] | ||
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[[Category:Economics terms]] | [[Category:Economics terms]] | ||
Revision as of 04:38, April 7, 2014
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.