Is There a Tulip in Your Future?: Ruminations on Tulip Mania and the Innovative Dutch Futures Markets

Abstract

This essay emphasizes and explicates factors and forces that led to the creation of the tulip futures market (increased globalization, a rising prosperity and middle class, etc.). It considers whether critics of that market were correct about Tulip Mania. The introductory section describes briefly the Dutch economy and states the thesis that the Dutch developed an innovative futures market. The principal section describes the forces and factors at work in the tulip futures market. The concluding normative section assesses the bases for criticism and approves of the workings of the market.

Keywords: Early markets, Dutch economy, Market futures, Tulip Mania

JEL Classification: K29, N23, N83