In a previous
post, I discussed how the Bristol pound deals with the last period problem
associated with fiat money (click here). The Bristol pound seems to be doing well – over 300 retailers plus
service providers such as solicitors, buskers, and private tutors accept
it. In fact, the Bristol pound has been
so successful that several big businesses want a part of the action. You can read more by clicking here and here. (Hat tip to Chris Colvin, a former
Bristolian).
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.