Tulip mania was a period in the Dutch Golden Age during which contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels. It is generally considered the first recorded speculative bubble in history. At one point 12 acres of land were offered for a Semper Augustus bulb.
About Tulip mania in brief
Tulip mania was a period in the Dutch Golden Age during which contract prices for some bulbs of the recently introduced and fashionable tulip reached extraordinarily high levels and then dramatically collapsed in February 1637. It is generally considered the first recorded speculative bubble in history. Tulip bulbs, along with other new plant life like potatoes, peppers, tomatoes, and other vegetables, came to Europe in the 16th century. The introduction of the tulip to Europe is usually attributed to Ogier de Busbecq, the ambassador of Ferdinand I, Holy Roman Emperor, to the Sultan of Turkey, who sent the first tulip bulbs and seeds to Vienna in 1554 from the Ottoman Empire. The tulip was different from other flowers. known to Europe at that time, because of its intense saturated petal color. The appearance of the nonpareil tulip as a status symbol coincides with the rise of newly independent Holland’s trade fortunes. At one point 12 acres of land were offered for a Semper Augustus bulb. Some modern economists have proposed rational explanations, rather than a speculative mania, for the rise and fall in prices. For example, other flowers, such as the hyacinth, also had high initial prices at the time of their introduction, which immediately fell. The high asset prices may also have been driven by expectations of a parliamentary decree that contracts could be voided for a small cost, thus lowering the risk to buyers.
As a result, tulips rapidly became a coveted luxury item, and a profusion of varieties followed. They were classified in groups: the single-hued tulips of red, yellow, or white were known as Couleren; the multicolored Rosen ; Violetten ; and the rarest of all, Bizarden. The multicolor effects of intricate lines and flame-like streaks on the petals were spectacular, making these even more exoticlooking plants highly sought-after. It’s now known that a type of tulip virus, known as the mosaic virus, is responsible for this effect. Many early forms were prefixed Admirael, often combined with the names of the growers’ names: Admirael van der Eijck, Van der Loo, van der Loe, and van der Wijck. Later, the prefix Generael was also used for more extravagant varieties, so that around fifty varieties were given the prefix. The term \”tulipMania\” is now often used metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values. The 1637 event gained popular attention in 1841 with the publication of the book Extraordinary Popular Delusions and the Madness of Crowds, written by Scottish journalist Charles Mackay. Although Mackay’s book is a classic, his account is contested. Many modern scholars feel that the mania wasn’t as extraordinary as Mackay described and argue that not enough price data is available to prove that a tulip-bulb bubble actually occurred.
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This page is based on the article Tulip mania published in Wikipedia (as of Nov. 10, 2020) and was automatically summarized using artificial intelligence.
