Bubble (economics)/Definition: Difference between revisions

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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: a process that continues until confidence falters, the bubble "bursts" and prices rapidly revert to an objectively-based level.

Latest revision as of 02:26, 3 December 2009

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