Many of the readers of this blog will be studying economics for the very first time. Economics is a very exciting subject, which, if used properly, can be a very powerful instrument which aids our understanding of the economy and society. The Open University has a series of 60 second videos which explain six basic economic concepts in a novel and concise manner. You can watch them here.
My colleague and former PhD student Gareth Campbell has created a website about the British Railway Mania - click here . This episode has been described by the Economist as probably the greatest bubble in human history. Gareth's website provides background on the Mania and posits some explanations for the 'bubble'. In his explanation of why the bubble happened, Gareth places a lot of emphasis on investor myopia regarding future dividends and uncalled capital. His study of investors during the episode does not support the view that this episode was fuelled by naive and irrational investors.
