Does America Have A Bubble Economy? No

Does the U.S. have a Japanese-style bubble economy? And should the Federal Reserve burst it with higher interest rates, even at the risk of recession? A growing chorus says yes. Asset inflation, they argue, requires an immediate tightening of monetary policy and a throttling-back of the economy. Just look at the soaring stock market or surging house prices. Even movie tickets and admission prices at Disneyland are going up. Unless the Fed acts, they say, the U.S. economy will overheat and crash, just like Japan's.

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