TED-Ed: What causes economic bubbles? - Prateek Singh

The video explores the concept of economic bubbles, starting with the historical example of tulip mania in the 17th century Netherlands. It explains how tulips became highly valued, leading to a bubble that eventually burst. The video draws parallels with modern examples like the dot com bubble, highlighting how prices can rise due to hype and fall when reality sets in. It concludes with a discussion on the challenges of predicting and avoiding bubbles, emphasizing the cyclical nature of economic booms and busts.

In what ways do investor behaviors contribute to the formation of economic bubbles?

What lessons can be learned from tulip mania that apply to modern economic situations?