Daily Archives: Feb 23, 2019 at 07:13 am EDT

Book Bits | 23 February 2019

Bubbles and Crashes: The Boom and Bust of Technological Innovation
By Brent Goldfarb and David A. Kirsch
Summary via publisher (Stanford University Press)
Financial market bubbles are recurring, often painful, reminders of the costs and benefits of capitalism. While many books have studied financial manias and crises, most fail to compare times of turmoil with times of stability. In Bubbles and Crashes, Brent Goldfarb and David A. Kirsch give us new insights into the causes of speculative booms and busts. They identify a class of assets—major technological innovations—that can, but does not necessarily, produce bubbles. This methodological twist is essential: Only by comparing similar events that sometimes lead to booms and busts can we ascertain the root causes of bubbles.
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