Boom: Bubbles and the End of Stagnation

Byrne Hobart and Tobias Huber examine the recurring pattern of economic booms and busts, arguing that these cycles are not anomalies but the fundamental engine of long-term growth. The authors trace the history of speculative manias, from the tulip bubble to the dot-com crash, to demonstrate how periods of intense capital accumulation and technological innovation inevitably lead to stagnation when the bubble bursts. They contend that the post-2008 era of low growth is not a permanent state but a typical phase in the boom-bust cycle, suggesting that the next major expansion is likely to be driven by emerging technologies and a renewed willingness to take risks.

Written in a clear, analytical, and accessible style, the book blends historical narrative with economic theory to challenge the prevailing pessimism about modern capitalism. Rather than viewing bubbles as failures of regulation or morality, the authors present them as necessary mechanisms for allocating capital to high-risk, high-reward innovations. The text serves as a counter-narrative to the idea of permanent stagnation, offering a framework for understanding how economies evolve through cycles of excess and correction.

Description adapted from Open Library bibliographic data ↗.