Tulip mania case study

The Tulip Mania is considered by many as the first recorded story of a financial bubble, which supposedly occurred in the s. The country had the highest global per capita income at that time, thanks to its growing international commerce and extensive trading operations. The economic boom helped many people achieve wealth and prosperity, which in turn drove the market for luxury goods. In this context, one of the most coveted items were tulips, particularly those that had a mutation to make them even more stunning than the typical flowers. These unique flowers were much different from the other options available, so everyone wanted to show them off due to their unusual colors and patterns.
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Tulip mania

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The Real Story Behind the 17th-Century ‘Tulip Mania’ Financial Crash - HISTORY

The Dutch tulip bulb market bubble, also known as 'tulipmania' was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid s when speculation drove the value of tulip bulbs to extremes. At the height of the market, the rarest tulip bulbs traded for as much as six times the average person's annual salary. Today, the tulipmania serves as a parable for the pitfalls that excessive greed and speculation can lead to. Tulips first arrived in Western Europe in the late 's, and, being an import from their native Turkey, commanded the same exoticism that spices and oriental rugs did.
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Tulipmania: the first economic bubble

Please join StudyMode to read the full document. It is a very good book with the recommendation from Professor Paul A. Content of the Book The book is separated into 13 Chapters. Chapter 1 gave a summary of the whole book and mentioned the cases of the financial crisis happened in the history.
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