How market bubbles have emerged throughout history?
No Thumbnail Available
URL
Journal Title
Journal ISSN
Volume Title
School of Business |
Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.
Authors
Palmqvist, Kasper
Date
2022
Department
Major/Subject
Mcode
Degree programme
Taloustiede
Language
en
Pages
24 + 2
Series
Abstract
Inflating asset prices and following crashes pose a great threat to economies of the world. Bursting of a market bubble can lead to millions being unemployed and such disastrous events can have long- lasting adverse effects on economy and citizens’ welfare. In a global world, these financial crises tend to spill and cause distress for the whole world’s economy. While market bubbles have been widely studied, this phenomenon continues to be something that we cannot reliably measure nor prevent beforehand. In this thesis, I will go through reasons and characteristics of market bubbles as well as models trying to explain the dynamics of market bubbles. By comparing presented theory to historical examples, I aim to give a comprehensive overlook on how market bubbles have emerged throughout history. To reach this objective I first discuss factors that drive markets to bubbles, then go through theories on how bubbles can sustain themselves and finally introduce historical examples of significant market bubbles. This thesis will be conducted as a literature review by presenting both economic research and financial history around the topic. To narrow the topic, only stock market bubbles will be considered in this thesis.Description
Thesis advisor
Kitti, MitriKeywords
bubbles, stock market bubbles, financial history, stock market