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The Return of Bubble Talk about the Technology Market
July 06, 2015

The wealth-to-income ratio in the U.S. has been in a boom-bust cycle since the mid-1990s. The 1999-2000 tech
bubble provided an example of such a cycle. During remarks at the Emerging Venture Leaders Summit on June
30, St. Louis Fed President James Bullard discussed what has recently revived talk of a bubble, in particular
regarding the technology market. While his view is that low interest rates tend to feed bubbles, he
acknowledged reasons why tech today is not an exact repeat of the 1990s.

Additional Resources
• Remarks: After Touring Tech Startups, Bullard Discusses Innovation, “Bubbles” and More at Summit
• On the Economy: Liftoff and the Natural Rate of Interest
• On the Economy: What Drives Long-Run Economic Growth?