Great Bubbles
Periods of euphoria followed by sudden crashes are a familiar phenomenon in economics. Such events have become known as "bubbles". A bubble may be defined loosely as a sharp rise in the price of an asset or a range of assets in a continuous process, with the initial rise generating expectations of further rises and attracting new buyers. The rise is then followed by a reversal of expectations and a sharp decline in price, often resulting in severe financial crisis—in short, the bubble bursts.
Great Bubbles brings together writings on such phenomena—with works centring upon some of the more colourful examples. They concentrate on the impact and legacy of three of the most prominent bubbles: the Tulip Mania of 1636, the Mississippi Bubble of 1720 and the South Sea Bubble of the same period.
Periods of euphoria followed by sudden crashes are a familiar phenomenon in economics. Such events have become known as "bubbles". A bubble may be defined loosely as a sharp rise in the price of an asset or a range of assets in a continuous process, with the initial rise generating expectations of further rises and attracting new buyers. The rise is then followed by a reversal of expectations and a sharp decline in price, often resulting in severe financial crisis—in short, the bubble bursts.
Great Bubbles brings together writings on such phenomena—with works centring upon some of the more colourful examples. They concentrate on the impact and legacy of three of the most prominent bubbles: the Tulip Mania of 1636, the Mississippi Bubble of 1720 and the South Sea Bubble of the same period.
Description
Periods of euphoria followed by sudden crashes are a familiar phenomenon in economics. Such events have become known as "bubbles". A bubble may be defined loosely as a sharp rise in the price of an asset or a range of assets in a continuous process, with the initial rise generating expectations of further rises and attracting new buyers. The rise is then followed by a reversal of expectations and a sharp decline in price, often resulting in severe financial crisis—in short, the bubble bursts.
Great Bubbles brings together writings on such phenomena—with works centring upon some of the more colourful examples. They concentrate on the impact and legacy of three of the most prominent bubbles: the Tulip Mania of 1636, the Mississippi Bubble of 1720 and the South Sea Bubble of the same period.
