I have a chapter in a book which has just been published by Oxford University Press. The book is entitled British Financial Crises Since 1825. My chapter looks at the role capital and extended shareholder liability played in assuring British banking stability from 1826 until the 1930s, a theme which is developed at length in my new book Banking in Crisis. My colleague Gareth Campbell also has a chapter in the same book. His chapter looks at the Railway Mania and and the 1847 commercial crisis.
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.