Ominously, Mr Morris sees a closer parallel in the great Japanese asset bubble of the 1980s.
As these countries experience retardation and stagnation in economic growth, their aggressive monetary policies run the risk of another asset bubble similar to the one that led to the recent financial market collapse and recession.
China is Exhibit A. With a vigorous domestic recovery under way, China ought to tighten soon, before asset prices bubble out of control.
The recession was caused not, as before, by inflation taking off, but by the bursting of an asset-price bubble.
Last week the government announced measures to cool property prices including higher stamp duties because of concerns that an asset bubble is being created.
Meanwhile, BoJ officials have long expressed fears that aiming for significantly higher levels of inflation could trigger a bubble in asset prices -- or worse, a collapse in the currency.
Look only at Japan for a painful reminder of the implications of a burst asset-price bubble.
The absence of a prior asset and credit bubble makes the Italian adjustment path much smoother and less disruptive fiscally and financially, in our view.
FORBES: Italy Won't Need To Tap Emergency IMF-EU Funds, S&P Says
"It is a prudent measure in view of the higher asset and commodity prices, to rein in any build up of a bubble in the future, " said Sandeep Bagla of Principal Mutual Fund.
For Mr Lindsey has made no secret of the fact that he considers the American economy to be suffering from an asset-price bubble.
That stimulus, mostly in the form of fixed asset investments in infrastructure, followed by low interest rates, fueled a hard asset bubble that the Chinese government has been trying to pop since last year.
FORBES: Barclays Reiterates 'No Hard Landing' Call For China
It was because of conflict between the ministry's financial and fiscal responsibilities (which led to the asset-inflated bubble economy a decade ago and the subsequent banking mess) that administrative reform became popular in the first place.
应用推荐