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Smart Reasoning:

C&E

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Qaagi - Book of Why

Causes

Effects

rapidly growing investment activitieshave causeda new asset price bubble

the Fed?s low - rate policycould causea new asset - price bubble

to keep interest rates lowleadingto a massive asset price bubble

masses of credit - moneycausesasset price bubbles and malinvestment

This policyhas resultedin a massive asset price bubble

These capital inflowsledto a large asset price bubble

a short selling ban in itselfmay causethe next asset price bubble

This increased liquidity along with low interest ratesleadsto a huge asset price bubble

the financial systemcausedasset price bubbles around the world

On the other hand , if interest rates remain too low for too long , prices may rise faster than the Fed can controlmay leadto asset price bubbles

large inflows of capital ... high credit growthcould resultin asset price bubbles

the financial instabilityresultsfrom the bursting of asset price bubbles

the risk that inflation could surge out of controlcould leadto asset price bubbles

excessive global liquidityhas contributedto asset price bubbles

strong capital inflowswould leadto asset price bubbles

monetary policy ... low interest rates , long - term excess liquiditywill contributeto asset price bubbles

First credit expansionleadsto an asset price bubble

excessive credit growthcould ... leadto an asset price bubble

this type of investmentledto asset price bubbles

monetary policy ... long - term excess liquiditywill contributeto asset price bubbles

excessive credit creationcausesasset price bubbles

capital flowsleadto asset price bubbles

Cheap creditleadsto asset price bubbles

by credit expansion(passive) caused byasset - price bubbles

a credit boom ... in turnwill leadto an asset - price bubble

too easy monetary policycontributedto asset price bubbles

Practice ... if monetary policy is too loose , low interest rates , long - term excess liquiditywill contributeto asset price bubbles

a massive credit boomcausedan asset price bubble

the Fed?s monetary policycould leadto asset - price bubbles

what factorscan causeasset price bubble

factorscan contributeto an asset price bubble

than the Fed can controlmay leadto asset price bubbles

the flood of money it is pumpingcausesan unwelcome asset price bubble

pricesleadingto asset price bubbles

With more money chasing existing assets , prices rosecausingasset price bubbles

rapid flow of credit towards the sectormay resultin asset price bubbles

non - productive investmentleadingto asset price - bubbles

real investmentscausingasset price bubbles

the Fed?s low interest rate policyleadsto asset price bubbles

debtleadsto asset price bubbles

to credit boomsleadto credit booms

the development in both financial markets and real economyto influencethe development in both financial markets and real economy

The present crisis(passive) was caused byThe present crisis

This crisis(passive) was caused byThis crisis

the stagewould setthe stage

up the stage for yet another global boom - bust cyclewould setup the stage for yet another global boom - bust cycle

to rising inflation expectationscan leadto rising inflation expectations

the 2008 financial crisiscausedthe 2008 financial crisis

to financial instabilityleadsto financial instability

to recession in the real economycan leadto recession in the real economy

financial crises(passive) caused byfinancial crises

to significant losses for banks and bond investorsmay leadto significant losses for banks and bond investors

The long - stagnation(passive) was initially caused byThe long - stagnation

to a financial crisisleadsto a financial crisis

its economyledits economy

alwaysleadsalways

alsocan ... causealso

to recession in the real economycan leadto recession in the real economy

to inflationleadto inflation

to a broad financial crisis and credit crunchwill leadto a broad financial crisis and credit crunch

market turmoilmay causemarket turmoil

to crashesleadto crashes

largelyresultlargely

to the crisisledto the crisis

in tearsmay resultin tears

to the crashledto the crash

clearlyleadclearly

to an economic crisismay leadto an economic crisis

in tearsmay resultin tears

The economic problems(passive) caused byThe economic problems

in tears ... for investorsmay resultin tears ... for investors

to the kind of borrowing and spending that has caused problems in the westhave ledto the kind of borrowing and spending that has caused problems in the west

to depreciation of the dollarwould leadto depreciation of the dollar

in tears ... for investors acting on bad incentivesmay resultin tears ... for investors acting on bad incentives

in tears for investors acting on bad incentivesresultin tears for investors acting on bad incentives

namely booms(passive) caused bynamely booms

namely booms(passive) caused bynamely booms

in tearsmay resultin tears

an optimistic atmosphere in Japan(passive) caused byan optimistic atmosphere in Japan

to a recessionleadsto a recession

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Smart Reasoning:

C&E

See more*