From Holland’s tulips in the 1630s to the global financial crisis of 2008, speculative investments that have gone bust share several features, identified by the late economist John Kenneth Galbraith in his 1990 book, A Short History of Financial Euphoria. The IMF’s Andreas Adriano pairs Galbraith’s wise pronouncements with the modern-day enthusiasm over cryptocurrencies. Through Galbraith, Adriano draws some thought-provoking parallels with previous bubbles. While never giving investment advice, getAbstract nonetheless recommends this engaging essay to fans of bitcoin and other virtual money.
In this summary, you will learn
- What financial bubbles throughout history have in common, according to the late economist John Kenneth Galbraith;
- How Galbraith’s observations about financial mania apply to cryptocurrencies; and
- What the future may hold for bitcoin and other virtual currencies.
About the Author
Andreas Adriano is a senior communications officer at the International Monetary Fund.