We show how since the mid 1980s expansionary monetary policies in the large economies and “vagabonding liquidity” have contributed to bubbles in the new and emerging markets. Based on the monetary overinvestment theories of Hayek and Wicksell we describe a wave of bubbles and crises that was...

Credit booms have globally fuelled hikes in stock, raw material and real estate markets which have culminated in the recent US subprime market crisis. We explain the global asset market booms since the mid 1980s based on the overinvestment theories of Hayek, Wicksell and Schumpeter. We argue...

Historisch niedrige Inflationsraten und Warnungen vor Deflation gehen in den großen Industrieländern mit Exzessen auf den Finanzmärkten einher. Um Wachstum und Inflation wiederzubeleben, werden im Zuge der quantitativen Lockerung die Zentralbankbilanzen aufgeblasen, ohne dass es zum einem...

Credit booms have globally fuelled hikes in stock, raw material and real estate markets which have culminated in the recent US subprime market crisis. We explain the global asset market booms since the mid 1980s based on the overinvestment theories of Hayek, Wicksell and Schumpeter. We argue...

We show how since the mid 1980s expansionary monetary policies in the large economies and “vagabonding liquidity” have contributed to bubbles in the new and emerging markets. Based on the monetary overinvestment theories of Hayek and Wicksell we describe a wave of bubbles and crises that was...

Historisch niedrige Inflationsraten und Warnungen vor Deflation gehen in den großen Industrieländern mit Exzessen auf den Finanzmärkten einher. Um Wachstum und Inflation wiederzubeleben, werden im Zuge der quantitativen Lockerung die Zentralbankbilanzen aufgeblasen, ohne dass es zum einem...

Building upon the Austrian over investment theory it is argued that credit and asset market booms have emerged during phases of buoyant liquidity supply since the 1980s. We argue that major central banks have tended to lower interest rates too much for too long when bubbles burst and panic...

We show how since the mid 1980s expansionary monetary policies in the large economies and vagabonding liquidity have contributed to bubbles in the new and emerging markets. Based on the monetary overinvestment theories of Hayek and Wicksell we describe a wave of bubbles and crises that was...

Credit booms have globally fuelled hikes in stock, raw material and real estate markets which have culminated in the recent US subprime market crisis. We explain the global asset market booms since the mid 1980s based on the overinvestment theories of Hayek, Wicksell and Schumpeter. We argue...

German Abstract: Historisch niedrige Inflationsraten und Warnungen vor Deflation gehen in den großen Industrieländern mit Exzessen auf den Finanzmärkten einher. Um Wachstum und In-flation wiederzubeleben, werden im Zuge der quantitativen Lockerung die Zentral-bankbilanzen aufgeblasen, ohne...