Tulip Mania: A Tale of Speculative Bubbles

byTulika Prashant

Once upon a time, in the early 17th century, the Dutch Republic was flourishing. Its cities bustled with merchants, artists and philosophers. Among the many luxuries of the time, one in particular stood out—tulips. Interestingly, these vibrant, colourful, exotic flowers were not native to Europe, but they quickly became symbols of wealth, beauty and prestige. This was the beginning of Tulip Mania, the first recorded financial bubble in history.

Tulip Mania: A Tale of Speculative Bubbles

The Birth of Tulip ManiaTulips first arrived in Europe around the mid-1500s from the Ottoman Empire. The wealthy became enamoured with the flower’s vivid colours, particularly the rare broken tulips, which were streaked with contrasting colours. This mutation was caused by a virus, but at the time