Inflation?Economic bubble?
In economics,inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] When the price level rises,each unit of currency buys fewer goods and services; consequently,inflation is also an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account in the economy
An economic bubble (sometimes referred to as a speculative bubble,a market bubble,a price bubble,a financial bubble,a speculative mania or a balloon) is “trade in high volumes at prices that are considerably at variance with intrinsic values”.
from the definition of inflation and economic bubble,we get the inflation is the economic bubble and vice versa?
人气:445 ℃ 时间:2020-08-01 12:42:20
解答
it's me again :)
inflation describes the fact of rising general price level.
bubble refers to those assets that are overly traded in prices that are unrealistically high.
The US e-commerce bubble in 2000,for instance,refers to the frenzy of buying tech stocks in US,which piled up prices of intrinsically worthless IPOs.
conclusion:the duo is quite different with each other.the former looks at the whole economy,while the latter represents a particular commodity,industry,etc..
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