South Sea Bubble: 18th Century Meltdown

South Sea Bubble by Edward Matthew Ward

In 2008, a global recession hit the world hard. It is a fact in an economy that there are periods of highs and lows, booms and bust. Bursting bubbles were inevitable if an authority is not careful enough. Bubbles are characterize by rapid rise of prices of a commodity and its sudden deflation caused by different circumstances. After nearly a century after the Tulip Mania, another bubble was created just a sea across, to England. A new and more volatile bubble was created. From a flower, the crazed turned to hopes and lies of a monopoly and profit of a company, the South Sea Company.

Florin: Medieval Age Euro

The famous landmark of Florence, the Duomo, 
or the Basilica di Santa Maria del Fiore 

Coins are part of our everyday lives. It allows us to make transactions in small quantities, like buying a candy or using for transportation fair, or even a simple vending machine. The history of coins had progressed so long. It began by the time people discovered metals and learned how to trade. In the Medieval period, one coin that dominated the period was made by the small but powerful Italian city-state of Florence – Florin.

Tulip Mania: The First Big Bust

Semper Augustus - a popular species
of tulip during the Mania

In 2008, a global recession hit the world hard. It is a fact in an economy that there are periods of highs and lows, booms and bust. Bursting bubbles were inevitable if an authority is not careful enough. Bubbles are characterize by rapid rise of prices of a commodity and its sudden deflation caused by different circumstances. In history, one of the weirdest but significant bubbles was started by a flower – a tulip.

Mussolini's Battles: The Battle for Lira

Mussolini (center) in 1922

In 1922, the Europe was still recovering from the horrors and devastation of World War I. The huge casualties caused a huge drain to manpower. It also destroyed a lot of farms and factories. In addition, many countries were in debt which was caused by the huge money needed to wage the war. The pressure to repair the economy and rejuvenate their country fell to the leaders of the post war period. Some governments, however, failed to bring this needed boost and recovery to their people. This failure caused their fall. In Germany, the monarchy under Wilhelm II fell in the hands of Republicans. In Italy, the reins of power came under the hands of a new far right wing party – the fascist. They were led by a World War I veteran and die hard fascist named Benito Mussolini. He would instigate series of economic battles, among this battles was the Battle for the Lira.

Paper Money: Great Invention of China -- Part 2

Jiaozi

Paper money is a crucial part of an economy and even our everyday lives. It is use to pay our allowances and salaries. It is used to pay our needs and wants. For the whole economy, it saves consumers from the burden of carrying large amounts of heavy coins. It is also a way to stimulate the economy. However, if there is too much paper money in circulation, its value decreases and prices could also increase. This effects are not new. During the infancy of paper money, it suffered the same effects.

Paper Money: Great Invention of China -- Part 1

Jiaozi

Paper money is a crucial part of an economy and even our everyday lives. It is use to pay our allowances and salaries. It is used to pay our needs and wants. For the whole economy, it saves consumers from the burden of carrying large amounts of heavy coins. It is also a way to stimulate the economy. However, if there is too much paper money in circulation, its value decreases and prices could also increase. This effects are not new. During the infancy of paper money, it suffered the same effects.