Eli5: When there’s an economic bubble I’ve heard goods described as “overvalued”; how do economists determine if something is overvalued?

Question

After all, isn’t pretty much everything just worth whatever people are willing to pay for it?

In: Economics

Answer 1

> After all, isn’t pretty much everything just worth whatever people are willing to pay for it?

Yes. A lot of economists will tell you that there are no such things as bubbles. For example Scott Sumner: https://www.themoneyillusion.com/whatever-floats-your-boat/