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Economic Commentary

Bubble, Toil, and Trouble

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.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Craig, Ben R. 2003. “Bubble, Toil, and Trouble.” Federal Reserve Bank of Cleveland, Economic Commentary 10/15/2003.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International