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Bubble, Toil, and Trouble

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Not everyone believes bubbles occur in stock markets. Many economists do, but others think something else is happening during periods of rapidly rising and plummeting stock prices. This Commentary explains the two schools of thought and shows how both can describe a famous historical episode known as the Mississippi bubble.

Not everyone believes bubbles occur in stock markets. Many economists do, but others think something else is happening during periods of rapidly rising and plummeting stock prices. This Commentary explains the two schools of thought and shows how both can describe a famous historical episode known as the Mississippi bubble.


Suggested citation: Craig, Ben, 2003. "Bubble, Toil, and Trouble" Federal Reserve Bank of Cleveland, Economic Commentary, 10.15.2003.

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