skylan_q: taking a step back, I'm being a bit liberal with the traditional use of inflation. Inflation is generally reserved for the 'general' price level. I don't believe we are capable of determining the 'general' price level, and the conflicts over various measures of inflation, what to include and how to modify it year to year, to my mind is evidence that it is not wholly agreed upon that we are capable of measuring it.
So I assume you are suggesting that a bubble is when an industry is out of sync with the general economy, in terms of pricing and/or growth. I would argue that that is not critical to the notion of a bubble. A bubble is overvaluation of an asset class. To restrict it with dis-coordination would mean a bubble could not occur during hyper-inflation.
So I assume you are suggesting that a bubble is when an industry is out of sync with the general economy, in terms of pricing and/or growth. I would argue that that is not critical to the notion of a bubble. A bubble is overvaluation of an asset class. To restrict it with dis-coordination would mean a bubble could not occur during hyper-inflation.