 Bubbles: Trouble or Tamable?Nikhilesh Dholakia and
Romeo V. Turcan
Chapter 8 in Toward a Metatheory of Economic Bubbles: Socio-Political and Cultural Perspectives, 2014, pp 86-97 from Palgrave Macmillan Abstract: Abstract In this concluding chapter, the issues are clear and straightforward: (1) Can bubble processes be detected early and stopped before they turn dangerous? (2) If bubbles form and burst, can steps be taken to control the damage and recover quickly? We argue that in bubble-prone situations, the inflation of a dangerous bubble could be avoided, or at least mitigated, by encouraging multiple, independent opinions on the realistic value of the asset; creating transparency about the motives of, and possible gains for, those who hype the asset; uncovering and shining a light on the linkages among asset inventors-creators, owners, funders, analysts, promoters, and speculators. Governments, nongovernment organizations, media, and universities can take up the responsibilities of doing these things. The pathways to regulate bubbles are clear-cut; however, the political economy of taking such actions is fraught with complexity. Keywords: asset bubbles; political economy; regulation; transparency (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-36179-0_8 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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