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Economics vocabulary · Economic News and Data

Bubble

Meaning in economics, with examples

nounCommon term

In economics, bubble means: A situation in which the price of an asset such as housing or shares rises far above its real value because buyers expect it to keep rising, until it eventually collapses.

In Turkish: balon, spekülatif balon

How it is used

Bubbles form, inflate and eventually burst or pop. Famous examples include the dot-com bubble of the late 1990s and the US housing bubble before 2008. People often argue about whether a bubble exists until it bursts.

Example sentences

  1. When the housing bubble burst, prices fell by a third in two years.

  2. Some analysts warn that cheap credit is creating a bubble in the property market.

Common collocations

  • housing bubble
  • the bubble bursts
  • asset bubble
  • speculative bubble
  • dot-com bubble
  • interest rateThe price of borrowing money, shown as a yearly percentage of the amount borrowed; for savers, it is the return they earn on deposits.
  • recessionA significant fall in economic activity lasting months, with falling output, income and jobs; often defined as two quarters in a row of shrinking GDP.
  • marketAny arrangement, physical or online, where buyers and sellers meet to exchange goods, services or assets, and where prices are formed.
  • quantitative easingA policy in which a central bank creates new money to buy large amounts of government bonds or other assets, aiming to lower long-term interest rates.

More terms: Economic News and Data

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This page explains English vocabulary for learners. It is not financial advice.