Financial crises in historical perspective: from tulip mania to the Mississippi bubble
DOI:
https://doi.org/10.32826/reyf.v4i10.411Keywords:
Financial crises, Speculative bubbles, Economic cycles, Credit, Financial history, Speculation, Financial instabilityAbstract
Financial crises have accompanied the development of organized markets since their earliest historical stages. This paper presents a historical-descriptive analysis of three of the earliest major speculative crises in modern financial history: the Tulip Mania in the Dutch Republic (1637), the South Sea Bubble in England (1720), and the Mississippi Bubble in France (1720). Through a comparative approach grounded in classical economic historiography, the study examines the economic context, financial mechanisms, speculative dynamics, and institutional responses associated with each episode. The analysis is framed within the broader theory of economic and financial cycles, incorporating contributions from key scholars such as Juglar, Schumpeter, Minsky, and Kindleberger. The results reveal recurring patterns characterized by credit expansion, speculative euphoria, institutional fragility, and abrupt collapse of expectations. The paper concludes that crises are an inherent component of the historical evolution of financial markets and economic development.
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