1. Group Member
• Archana Kore 26
• Shanmuk Kore 27
• Trupti Kuchekar 28
• Manish Lipcha 29
• Reshma Mande 30

3. What is Economic Bubble
• Sometimes referred to as a speculative bubble
• It could also be described as a trade in
products or assets with inflated values.

4. Origin of term
• “Bubble", in reference to financial crises
• Originated in the 1711–1720 British South Sea
Bubble

5. Impact
• Economic bubbles are generally considered to
have a negative impact on the economy
• Political economist Robert E. Wright argues
that bubbles can be identified ex ante with
high confidence.

6. Effect upon spending
• Market participants with overvalued assets
tend to spend more because they "feel" richer
(the wealth effect)
• But When the bubble inevitably bursts, those
who hold on to these overvalued assets
usually experience a feeling of reduced wealth

7. Possible causes
• Bubbles occur when prices for a particular
item rise far above the item's real value
• Some experts think that bubbles are related to
inflation and therefore believe that the factors
which cause inflation could also be the same
factors that cause bubbles to occur.

9. 1. Uranium Bubble

10. 2. Dot-com Bubble

11. 3. Poseidon Bubble

12. 4. Florida Land Boom

13. 5. Mississippi Bubble

14. 6. Romanian Property Bubble

15. 7. Railway Mania

16. 8. Rhodium Bubble

17. 9. South Sea Bubble

18. 10. Tulip Mania

19. How can economic bubbles be prevented?

20. Can Bubbles Benefit the Economy?