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Boom and Bust

Boom and Bust

By William Quinn & John David Turner

A Global History of Economic Bubbles. Cambridge University Press, 2020.

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16 mins read

14 Key insights

A brief summary of Boom and Bust

An exploration by two economists of how economic bubbles form and burst, as well as their positive and negative consequences for societies, economies, and politics—ranging from the early Dutch tulip mania through to the 2008 financial crisis and beyond.

Key insights in Boom and Bust

1
What do you get from this book? The stories of history’s economic bubbles and a theory about how they happened
2
What is an economic bubble? An asset price becoming unrealistically inflated due to the satisfaction of “bubble triangle” conditions
3
The first two major economic bubbles in eighteenth-century France and England demonstrate the different economic impacts they can have
4
A nineteenth-century bubble in Latin American investments brought England’s banking system to its knees
5
The Great Railway Mania was “arguably the greatest bubble of all time,” and it helped to build Britain’s railway system
6
The Wall Street Crash had its roots in a bubble built on First World War funding sought by the US government
7
1980s Japan rode deregulation and corruption to a land and stock price bubble, from which it took decades to recover
8
The Dotcom Bubble was a net good, bringing a huge injection of capital into a cutting-edge industry
9
The Subprime Mortgage Bubble created the biggest financial crisis and recession since the Wall Street Crash, with consequences still ongoing
10
China’s 2000s and 2010s bubbles were huge and deliberately engineered to clear government debt, much like the earliest bubbles
11
Predicting and managing economic bubbles requires governments to recognize the bubble triangle and the media to prioritize realism
12
Summary of the key insights
13
Selected critiques in brief
14
Final word

Who should read Boom and Bust

Amateur investors • history buffs • economics students • people interested in global markets • armchair political analysts

About the author of Boom and Bust

William Quinn is a lecturer in Finance at Queen’s University Belfast with a focus on the history of stock markets. John David Turner is also a professor of Finance and Financial History at Queen’s, and his previous books include Banking in Crisis (2014).

author avatar

William Quinn

author avatar

John David Turner

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