Economic Growth: A Bull Market or a Bubble?
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Authors
Sagner, James S.
Issue Date
2014-03-28
Type
Presentation
Language
en_US
Keywords
Faculty research day , Business , Stock market , Economic growth
Alternative Title
Abstract
There is ongoing academic debate on the issue of whether the current economic recovery will lead to a disorderly bubble (as in 2008) or an orderly bull market as in the post-World War Two period. The massive destruction of wealth in the 2008 - 2010 period - if repeated – could be catastrophic. Steady growth would allow investors/savers to regain trust in the economy and induce business investment. Are asset bubbles inevitable as investors chase returns - and if so - are they necessarily a negative-sum game for society? This proposed research explores current evidence on each possible outcome and suggests future directions for analysis.