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Economics Assignment on Are bubbles always driven by irrationality

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Economics Assignment on Are bubbles always driven by irrationality

Analyse with reference to one of the following:
– The dotcom bubble of 2000-01;
– the 1970s developing economies lending boom;
– house price bubble of your choice.

Structure: (word limit is +- 2500)
introduction
1. Review (theory, concept)
2. Case study (what, when, where, to what extent, what is the problem with it)
3. analysis (analyse the evidence from section 2 using the concepts and theories in section 1. e.g. is the concept relevant? does the theory explain the case fully? why not? what does the case suggest about the concept or theory?)
conclusion

here are some ideas I have got for the essay:
Endogenous instability – Minsky
Predatory instinct – Veblen
Fail of the invisible hand – Adam smith

 
 
 

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