The Relationship between Bubble Economy and Financial Crisis and its Implications

A bubble economy triggers financial crises, which is evidenced by the frequent breakout of financial crisis in modern times. As some over-booming and economic bubbles have emerged in some fields or regions in China, we should keep alert and keep away financial crises. This paper gives an analysis of the relationship between bubble economy and financial crises in modern times and sheds some lights on some implications of China's current policy.