When did the phrase economic bubble first appear?
The phrase economic bubble first appeared during the 1711 to 1720 British South Sea Bubble. This financial crisis involved inflated stock prices for a specific company rather than the crisis itself.
Questions about Economic bubble
Short answers, pulled from the story.
What are the two major types of bubbles economists distinguish?
Economists primarily distinguish between equity bubbles and debt bubbles. An equity bubble features tangible investments while a debt bubble involves intangible or credit-based investments with little ability to satisfy growing demand in non-existent markets.
Who wrote about bubbles ending all at once without warning?
Oliver Wendell Holmes Sr wrote about bubbles ending all at once without warning. Some theories suggest instead that bubbles burst progressively over time as the most highly-leveraged assets fail first before the collapse spreads throughout the economy.
Which historical examples include the Dutch tulip mania and the Great Depression?
Notable historical examples range from Tulip Mania (1634, 1637) to the 2008 housing crisis and cryptocurrency fluctuations. The Roaring Twenties stock-market bubble spanned 1921 to 1929 before crashing into the Great Depression.
How did investor George Soros influence economic theory regarding reflexivity?
Investor George Soros promoted reflexivity in economics publicly in his 1987 book The Alchemy of Finance. He regards insights from applying this principle as major factors in his financial career success and asserts that prices influence fundamentals changing expectations thus influencing prices again.