Tulip Mania
The floral frenzy that led to economic disaster
About :
Tulip mania (Dutch: tulpenmanie) was a period during the Dutch Golden Age when contract prices for some bulbs of the
recently introduced and fashionable tulip reached extraordinarily high levels, and then dramatically collapsed in
February 1637. It is generally considered to have been the first recorded speculative bubble (or asset bubble) in
history. In many ways, the tulip mania was more of a hitherto unknown socio-economic phenomenon than a significant
economic crisis. It had no critical influence on the prosperity of the Dutch Republic, which was the world's leading
economic and financial power in the 17th century, with the highest per capita income in the world from about 1600 to
1720. The term "tulip mania" is now often used metaphorically to refer to any large economic bubble when asset
prices deviate from intrinsic values.
Source: Wikipedia