RSS feedAsset bubble
’Missing the Housing Bubble 101
Here’s an, erm, brave discussion paper out from the Boston Fed.
In it, authors Kristopher S. Gerardi, Christopher L. Foote, and Paul S. Willen examine “optimism” and “pessimism” about the US housing market before the recent crash.
Is China blowing bubbles?
Yes, says Citigroup’s Willem Buiter, who thinks the Chinese authorities will fail in their efforts to prevent a classic boom, bubble and bust asset sequence.
Higher interest rates, renminbi appreciation and additional macro-prudential controls have all been mooted as way to prevent booms and bubbles developing in the Chinese land,
China curbs more liquidity
It’s been speculated upon, and on Tuesday it became fact: China’s central bank raised banks’ reserve requirements by 0.5 percentage points in a bid to ward off soaring inflation. The new measures will be effective from January 18,
Asset bubble warnings, international monetary institution edition
Another day, another global asset bubble warning.
This time it comes courtesy of the World Bank’s chief economist for the East Asia & Pacific region, Vikram Nehru, who cautioned on Wednesday that risks to a sustainable recovery in the region still remain strong,