Asset Bubbles and Global Imbalances
Abstract: What caused the housing boom and bust of the early 2000s? Capital inflows from emerging markets to developed economies can contribute to the formation of bubbles in asset prices. Those bubbles encourage the accumulation of debt, and the deleveraging of that debt exacerbates the decline in economic activity when the bubble bursts.
File(s): File format is text/n3 https://www.richmondfed.org/publications/research/economic_brief/2020/eb_20-01
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2020-January