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Why do booms generate busts?
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When a cathode ray tube turns on it generates a bust of static electricity that builds up on the surface of the tube.
"Thus political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation," Mr. Bernanke added.
Thus, political interference in monetary policy can generate undesirable boom-bust cycles that ultimately lead to both a less stable economy and higher inflation".
If investments generate less or inflation busts out, all bets are off.
The common economic criticism of the drilling industry is that it booms and then busts, generating few local jobs and leaving little lasting economic benefit.
This dependence has made the economy one of the most volatile in the region, with frequent boom-bust cycles that generate social and political unrest while drastically increasing uncertainty for investment.
While the "Ivy League" bust generated a wave of media for Brennan and Kelly, the reality is that the headline-seeking bust has blown up in their faces with the arrest of Palase.
By issuing a warning now that quantitative easing may be coming to an end, Bernanke is seeking to forestall this problem before it generates another boom-bust cycle.
And third, a debt bust generates knock-on inefficiencies; households with negative equity, for instance, have been found to underinvest in upkeep of their properties.The question then becomes what to do about such busts.
His bust generated headlines heralding the dirty drug money nexus between Miami and Venezuela.
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