I will describe the earlier efforts in both hydrodynamic instability and turbulence mixing research and provide a broad non-mathematical overview of the significance of turbulence mixing on scientific and engineering applications. I will briefly explain several varied applications in which hydrodynamic instability plays a critical role, namely, inertial confinement fusion (ICF), supernova explosions, solar prominences, paintings, and combustions and detonations, among others, to provide the reader with an idea of what will be discussed later in the book.

The dramatic and continual increase in housing prices after 2008 was a major political issue in this period. Large interest cuts suffice to explain the growth in the price-rent ratio. Rising average income explains most of the growth in rents, which, properly calculated, was also high (though less than that of prices) in this period. Contrary to the general belief, population increase did not play much of a role. Owing to endogenous policy response, housing supply is more elastic than an institutional analysis would suggest. That response, which favoured owner-occupancy over rental, was driven mainly by the salience of the headline housing price index.

Chapter 8 examines the land and stock market bubbles that occurred in Japan in the 1980s. In the seven years before its peak, the Japanese stock market appreciated 386 per cent. Similarly, land prices rose by 207 per cent. By August 1992, the Japanese stock market had fallen 62 per cent from its peak, and by 1995, land was 50 per cent below its peak. Both land prices and the stock market continued to fall into the next decade. The chapter then uses the bubble triangle to explain the Japanese land and stock bubbles. These bubbles were purely political creations. Not only did the Japanese government provide the spark, but it systematically cultivated all three sides of the bubble triangle with the explicit goal of generating a boom. This process was clearest in the realm of money and credit, where an expansion was both a central part of Japan’s economic policy and, after the Plaza Accord, an international commitment. The chapter concludes by looking at how the collapse of the Japanese bubbles weakened the country’s banking system, which eventually had to be rescued by the government, and resulted in a stagnant economy for over two decades.

Chapter 5 examines the bubble that occurred in Australia in the late 1880s. During 1887 and 1888, there was a major bubble in the price of suburban land, particularly in Melbourne. In addition, companies involved in the financing and development of urban land were created at this time and during the first half of 1888, their share prices doubled. After the peak in October 1888, the share prices of these companies and urban land prices fell sharply. We then explain why it took several years for the liquidation of the land boom to affect the wider economy. The chapter then moves on to discuss how the bubble triangle explains this episode. In particular, this was the first major bubble where investors were speculating with other people’s money, provided ultimately by the country’s banks. The spark which ignited the land boom was the liberalisation in 1887 of the restriction on banks’ lending on the security of real estate. This was the final act in a 25-year liberalisation process. The chapter concludes by examining the dire consequences of the bubble. In 1893, the Australian banking system collapsed and, as a result, Australia experienced a very long and deep economic recession

Chapter 9 examines the bubble in internet and other technology stocks that occurred at the end of the 1990s. This bubble witnessed the coming to market of many young firms which had never generated a profit. The excitement resulted in the NASDAQ index trebling in value in the 18 months prior to its peak in March 2000. By the end of 2000, however, it had lost more than half of its value. This bubble in tech stocks was not confined to the United States – it was a global phenomenon. The chapter then uses the bubble triangle can explain the causes of the dot-com bubble. The spark was provided by the new internet technology. Marketability increased as a result of new technology and many more companies floating on stock exchanges. Monetary conditions were loose in the runup of the bubble and there was a sharp rise in margin lending. Speculation was rampant in the runup, thanks to the rise of the day trader. The chapter concludes by arguing that the modest levels of economic damage associated with the bursting of the dot-com bubble suggest it could have been useful. However, its minor economic impact might also have made the authorities and investors complacent about the housing bubble which followed on its heels.

Chapter 6 examines the bubble that occurred in the UK bicycle company shares in the 1890s. The modern bicycle emerged in the late 1880s after a series of revolutionary technological innovations, ranging from the pneumatic tyre to weldless steel tubes. Between 1895 and 1897, nearly 700 cycle companies were floated on the stock exchange, many of which were promoted by very questionable characters. An index of cycle shares appreciated 258 per cent in the first five months of 1896. The index remained high until the early months of 1897. By the end of 1898, the index was 71 per cent below its peak. The chapter then moves on to explore how the bubble triangle and the spark provided by the new technology explains the British bicycle mania. Marketability was high because so many cycle companies had floated their shares on the stock market and these shares had very low denominations. Monetary conditions were as loose as they ever had been up to that point and returns on traditional assets were very low. Speculation was rampant, but the presence of corners limited speculation in the opposite direction. The chapter concludes by arguing that the bicycle mania is a good example of a useful bubble.