The 1637 Dutch speculation episode often described as the first recorded financial bubble crash was tulip mania.
During the Dutch Golden Age, rare tulip bulbs attracted intense speculation. Contracts for bulbs changed hands at high prices, and some participants traded claims rather than immediately exchanging physical flowers. In February 1637, confidence collapsed and buyers became unwilling to meet earlier prices.
The scale of the episode has been exaggerated in popular retellings. Modern historians question some famous price anecdotes and argue that the economic damage to the Dutch Republic was limited compared with later financial crises. Tulip trading was also concentrated in particular contracts and communities.
Tulip mania remains important because it illustrates recurring features of bubbles: persuasive stories, leverage or credit, rising prices that attract imitators, and a sudden loss of confidence. It is often confused with the South Sea Bubble, which occurred in Britain in 1720 and involved shares in the South Sea Company.