Famous first bubbles

Famous first bubbles
Автор
 
Год
 
Страниц
 
176
ISBN
 
ISBN10:0262072041
Издатель
 
MIT

Описание:

The jargon of economics and finance contains numerous colorful terms for market-asset prices at odds with any reasonable economic explanation. Examples include "bubble," "tulipmania," "chain letter," "Ponzi scheme," "panic," "crash," "herding," and "irrational exuberance." Although such a term suggests that an event is inexplicably crowd-driven, what it really means, claims Peter Garber, is that we have grasped a near-empty explanation rather than expend the effort to understand the event.

In this book Garber offers market-fundamental explanations for the three most famous bubbles: the Dutch Tulipmania (1634-1637), the Mississippi Bubble (1719-1720), and the closely connected South Sea Bubble (1720). He focuses most closely on the Tulipmania because it is the event that most modern observers view as clearly crazy. Comparing the pattern of price declines for initially rare eighteenth-century bulbs to that of seventeenth-century bulbs, he concludes that the extremely high prices for rare bulbs and their rapid decline reflects normal pricing behavior. In the cases of the Mississippi and South Sea Bubbles, he describes the asset markets and financial manipulations involved in these episodes and casts them as market fundamentals.

Похожие книги

Switching Processes in Queueing ModelsSwitching Processes in Queueing Models
Автор: Vladimir Anisimov
Год: 2008
Famous First Bubbles: The Fundamentals of Early ManiasFamous First Bubbles: The Fundamentals of Early Manias
Автор: Peter M. Garber
Год: 2001
Famous First Bubbles: The Fundamentals of Early ManiasFamous First Bubbles: The Fundamentals of Early Manias
Автор: Peter Garber
Год: 1997