ECON 2720 Lecture 14: Lecture 14 - ECON
9 Mar 2017
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Document Summary
2:29 pm: gouda tulip bulb: one of the first financial bubbles. Irrational episode of trading in tulips (1634-1637) Within a month, price decreased from 60 to 0. Dutch went crazy over tulips and were prepared to spend a lot of money on them. This event disrupted the dutch economy for years: newspaper stories that draw back to contemporary accounts of tulip trading. Contemporary because its from the 17th century. Morality tales: sources that cited about tulip mania were written by people who have already decided that speculation in anything was evil. Little reliable sources: unheard of in dutch newspapers, newspapers in 1637 did not mention this, graphs that we see have many empty spaces and the gaps have to be guessed. Not enough for statistical analysis: tulips imported to netherlands from turkey, having tulips was a sign of wealth in the netherlands.
