Abstract
Financial crises from the South Sea Bubble to the Crash of 1929 have a common set of prerequisites, namely: novel change, easy money, and irrational human behavior. This paper argues that all three must be present to produce a sustained market panic; no single factor is sufficient to cause collapse on its own.
Keywords
financial crises
South Sea Bubble
Mississippi Bubble
Crash of 1929
behavioral economics
monetary policy
References
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- Bruner, Robert F., and Scott C. Miller. The Panic of 1791: Hamilton's Reports and the Rise of Faction (A). Charlottesville, VA: Darden Business Publishing, 2017.
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- Bruner, Robert F., and Scott C. Miller. The "Roaring '20s" and the Crash of 1929. Charlottesville, VA: Darden Business Publishing, 2019.
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- Bruner, Robert F., and Scott C. Miller. The South Sea Bubble and the Rise of the Bank of England. Charlottesville, VA: Darden Business Publishing, 2018.
- Quinn, William, and John D. Turner. Boom and Bust: a Global History of Financial Bubbles. Cambridge, United Kingdom: Cambridge University Press, 2020.
© 2025 Jakob Kuelps. Published by the Andover Economic Review under a non-exclusive publication license; the author retains copyright. The repository's MIT license covers site code only, not article content.