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The Paradox of Value and Economic Bubbles: New Insights for Sustainable Economic Development

Author

Listed:
  • Inna Gryshova

    (JSNU-SPbPU Institute of Engineering-Sino-Russian Institute, Jiangsu Normal University, 101 Shanghai Rd, Tongshan Qu, Xuzhou 221100, Jiangsu, China)

  • Tatyana Shabatura

    (JSNU-SPbPU Institute of Engineering-Sino-Russian Institute, Jiangsu Normal University, 101 Shanghai Rd, Tongshan Qu, Xuzhou 221100, Jiangsu, China)

  • Stasys Girdzijauskas

    (Kaunas Faculty, Vilnius University, Muitinės str. 8, LT-44280 Kaunas, Lithuania)

  • Dalia Streimikiene

    (Kaunas Faculty, Vilnius University, Muitinės str. 8, LT-44280 Kaunas, Lithuania)

  • Remigijus Ciegis

    (Kaunas Faculty, Vilnius University, Muitinės str. 8, LT-44280 Kaunas, Lithuania)

  • Ingrida Griesiene

    (Kaunas Faculty, Vilnius University, Muitinės str. 8, LT-44280 Kaunas, Lithuania)

Abstract

The article presents a new approach to the solution to the paradox of value based on the theory of marginal utility of the Austrian School of Economics. The new approach is based on the theory of compound interests and economic bubbles. The study presents valuable theoretical insight towards sustainable economic development. The paper provides a brief formulation of the theory of compound interests, introduces the structure of compound interests model, and shows the relations between simple and compound interests as well as dimensionless interests. It reveals the saturation phenomena, and emphasizes its impact on economic and financial bubbles. The relation between the value of paradox and the price bubbles is presented. The article also explains the possibilities of the phenomenology of growth in formulating the paradox of saturation and studying the paradox of value. The phenomenological method allows to relate prices and financial and economic bubbles into a general entirety. Therefore, this paper deals with very important sustainable development issues as it discusses the market saturation phenomena, economic bubbles, and emotional consumer behavior. The limitations of behavioral theories are pointed out and their misunderstandings of information cascades are emphasized. The article provides the explanation of the nature of economic bubbles by employing the theory of compound interests.

Suggested Citation

  • Inna Gryshova & Tatyana Shabatura & Stasys Girdzijauskas & Dalia Streimikiene & Remigijus Ciegis & Ingrida Griesiene, 2019. "The Paradox of Value and Economic Bubbles: New Insights for Sustainable Economic Development," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:24:p:6888-:d:293963
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    1. Ignas Mikalauskas & Darius Karaša, 2025. "The Risk of Financial Bubbles in Renewable Energy Markets," Energies, MDPI, vol. 18(6), pages 1-20, March.
    2. Taha Lahrech & Bochra Makhlouki & Younès Bekkar & Imane Bounadi & Rachid Harbouze & Nassreddine Maatala & Julien Burte, 2025. "Overcoming barriers to youth economic inclusion in rural Morocco: A case study of Daït Aoua," Post-Print hal-05182724, HAL.
    3. Inna Gryshova & Mykola Kyzym & Viktoriia Khaustova & Volodymyr Korneev & Hennadii Kramarev, 2020. "Assessment of the Industrial Structure and its Influence on Sustainable Economic Development and Quality of Life of the Population of Different World Countries," Sustainability, MDPI, vol. 12(5), pages 1-25, March.
    4. Darius Karaša & Žilvinas Drabavičius & Stasys Girdzijauskas & Ignas Mikalauskas, 2025. "Deconstructing the Enron Bubble: The Context of Natural Ponzi Schemes and the Financial Saturation Hypothesis," JRFM, MDPI, vol. 18(8), pages 1-18, August.
    5. Inna Gryshova & Mykola Kyzym & Irina Hubarieva & Viktoriia Khaustova & Anatoly Livinskyi & Mykola Koroshenko, 2020. "Assessment of the EU and Ukraine Economic Security and Its Influence on Their Sustainable Economic Development," Sustainability, MDPI, vol. 12(18), pages 1-26, September.

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