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Asset price bubbles and financial crises littered the mid-nineteenth and early twentieth centuries (see Schularick and Taylor, 2012).
Nor do asset price gains look particularly excessive.
"We've had a very broad set of asset price changes".
They thought the asset price bubble did not matter".
This is because private debt drives asset price inflation (bubbles).
"The last thing Asia wants is asset price bubbles," he said.
Similar(22)
Likewise, asset-price inflation can distort price signals.
It has not experienced a property or asset-price bubble.
One has to do with asset-price bubbles.
Second, it increases global asset demand, generating asset-price inflation.
Then, excess demand resulted in higher inflation, huge current-account deficits and rampant asset-price inflation.
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