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Subject:
From:
"Benjamin H. Mitra-Kahn" <[log in to unmask]>
Reply To:
Societies for the History of Economics <[log in to unmask]>
Date:
Thu, 19 Feb 2009 19:17:44 -0500
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In response to Daniele Besomi's comment on the effect of the bubble, 
yes I agree it had a very long lasting effect on perceptions, and 
even today it lives on in popular memory through books and now of 
course news coverage. Charles McKay's 1841 book on that bubble and 
the Tulip crisis is still being re-published. Also the bubble in 
France more or less killed the introduction of fiat money for a long 
time to come through the lasting impression of how Law's system had 
failed. (It is only recently that Law is being seen as an innovator 
and not a destroyer). So there is a definite effect on perceptions.

That said, the real effect on the economy was much much smaller than 
the public memory of the event might suggest, which is worth keeping 
in mind as well.

Best
Benjamin H. Mitra-Kahn

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