What causes economic bubbles?

Prateek Singh |

TED-Ed

• May 2015

View full lesson: http://ed.ted.com/lessons/what-causes... During the 1600s, the exotic tulip became a nationwide sensation; some single bulbs even sold for ten times the yearly salary of a skilled craftsman. Suddenly, though, the demand completely plummeted, leaving the tulip market in a depression. What happened? Prateek Singh explains the peak of a business cycle, commonly referred to as mania. (Lesson by Prateek Singh, animation by Simon Ampel)