• To bring the ratio of prices to rents back to equilibrium, either rents must rise sharply or prices must fall.

    ECONOMIST: Global house prices

  • These find that, when the ratio (suitably adjusted to take care of accounting discrepancies) moves far above one, equilibrium is indeed eventually restored not, however, by a surge in the replacement value of companies' assets but by a correspondingly dramatic fall in the value that Wall Street places on them.

    ECONOMIST: Letter of credit | The

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