In retrospect, considering that the period leading up to the mid-2000s had been referred to as the age of “Great Moderation” for its continued high growth, low inflation, and low interest rates, times have certainly changed.
And now, reflecting on the past quarter-century with a fresh eye, bubbles and financial crises have been emerging more frequently worldwide over time, with Japan’s economic bubble in the late 1980s, the Asian financial crisis in the late 1990s, and the global financial crisis in the 2000s, to name a few.