Tulipmania is the story of a speculative bubble, which took place in the 17th century when Dutch investors purchased tulips, pushing their prices to unprecedented highs. During Tulipmania, the average price of a single flower exceeded the annual income of a skilled worker and cost more than some houses at the time.

What caused the speculative bubble?

A speculative bubble is usually caused by exaggerated expectations of future growth, price appreciation, or other events that could cause an increase in asset values. ... The bubble is not completed until prices fall back down to normalized levels.

What Commodity created the speculative bubble in the Netherlands?

The Dutch tulip bulb market bubble, also known as 'tulipmania' was one of the most famous market bubbles and crashes of all time. It occurred in Holland during the early to mid-1600s when speculation drove the value of tulip bulbs to extremes.