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Katja Taipalus at the Bank of Finland said asset prices have been one of the main components as financial crises have built up, while bubbles have common characteristics. Taipalus said a bubble is people believing that prices will go up and that they can exit the market before it crashes.
Peter C.B. Phillips at Yale said financial stability is threatened by asset bubbles, excessive credit creation, uncontrolled risk-taking by banks and ballooning sovereign debt.
Esa Jokivuolle at Bank of Finland said crises involving debt-financed property-price imbalances tend to cause more harm in the real economy – the early 2000s IT bubble was a stock-market phenomenon that involve insignificant leverage and had a milder impact on the economy.
The OECD said the female employment rate in Finland last year was 68 percent and 90 percent worked full-time. The female employment rate in the US was 62 percent and 87 percent held full-time jobs and in the UK was 66 percent and 64 percent full-time.
Read the full article at http://www.bloomberg.com/news/2013-09-19/asset-bubbles-found-by-finnish-economist-inspired-by-grandfather.html
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