Bubbles: Part 2 - Tulip Mania (1634 - 1637)
Taking a look at the Dutch Tulip Mania of the 1630s and examining what caused it.
What The F#ck Happened During The Tulip Mania Of 1634-1637?
Setting The Scene
Tulips, which are native to Central Asia, became a very popular flower in the Ottoman Empire in the 16th century. During this period, it not only became a status symbol but came to represent God - so was cultivated in the royal garden and was featured in lots of artwork. Then, in 1554, the Tulip found its way to Europe.
Then in 1593, a botanist named Carolus Clusius planted tulip bulbs in his garden and proved that they could grow under extreme conditions. Further, he discovered a tulip virus that made the tulips grow and bloom with a flame-like pattern on them — this made them highly desirable. But, the tulips took about 7 years to grow and the supply was unable to keep up with the demand for these tulips, suggesting that some price inflation would occur naturally.