Tulip Mania is often cited as the first recorded financial bubble.
The episode took place in the Dutch Republic during the 1630s, when prices for certain tulip bulbs rose dramatically. Rare varieties were especially sought after, and contracts were traded in an increasingly speculative market. In February 1637, confidence weakened and prices collapsed.
Modern historians caution that later popular accounts exaggerated the scale of the mania and its damage. The evidence does not show that the entire Dutch economy was destroyed, and many famous stories come from moralizing pamphlets rather than reliable market records.
Tulip Mania is still useful as a historical example of speculative enthusiasm, leverage, and changing expectations. It is not the same event as the South Sea Bubble of 1720, which involved a publicly traded company and a government debt scheme.