An Historical Perspective on Speculative Bubbles and Financial Crises: Tulipmania and the South Sea Bubble

Michelle Baddeley and John McCombie

Chapter 11 in What Global Economic Crisis?, 2001, pp 219-243 from Palgrave Macmillan

Abstract: Abstract The rapid pace of globalization over the last decade or so, together with the deregulation of financial markets, has raised concerns about the increasing fragility of the world financial markets. However, as Kindleberger (1996) has shown in his Manias, Panics and Crashes, the problems of the instability of financial assets and commodities may be traced back to the seventeenth century. He cites numerous examples of rapid increases in prices being followed by an even quicker collapse. Such an event, when the price of an asset (or commodity) increases rapidly solely because investors expect it to happen, is termed a ‘speculative bubble’.1

Keywords: Cash Flow; Asset Price; Rational Expectation; Global Economic Crisis; Speculative Bubble (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (1)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-333-99274-6_11

Ordering information: This item can be ordered from
http://www.palgrave.com/9780333992746

DOI: 10.1057/9780333992746_11

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().