Bubbles, Financial Crises, and Systemic Risk

Handbook of the Economics of Finance, Volume 2, George M. Constantinides, Milton Harris & Rene M. Stulz, eds., North Holland, December 2012

Economic Theory Center Working Paper No. 47-2012

89 Pages Posted: 14 Oct 2012 Last revised: 10 Dec 2012

See all articles by Markus K. Brunnermeier

Markus K. Brunnermeier

Princeton University - Department of Economics

Martin Oehmke

London School of Economics & Political Science (LSE) - Department of Finance

Multiple version iconThere are 3 versions of this paper

Date Written: July 11, 2012

Abstract

This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first part of the chapter provides a brief historical account of bubbles and financial crisis. The second part of the chapter gives a structured overview of the literature on financial bubbles. The third part of the chapter discusses the literatures on financial crises and systemic risk, with particular emphasis on amplification and propagation mechanisms during financial crises, and the measurement of systemic risk. Finally, we point toward some questions for future research.

Keywords: Bubbles, Crashes, Financial Crises, Systemic Risk

JEL Classification: G00, G01, G20

Suggested Citation

Brunnermeier, Markus Konrad and Oehmke, Martin, Bubbles, Financial Crises, and Systemic Risk (July 11, 2012). Handbook of the Economics of Finance, Volume 2, George M. Constantinides, Milton Harris & Rene M. Stulz, eds., North Holland, December 2012; Economic Theory Center Working Paper No. 47-2012. Available at SSRN: https://ssrn.com/abstract=2161381

Markus Konrad Brunnermeier (Contact Author)

Princeton University - Department of Economics ( email )

Bendheim Center for Finance
Princeton, NJ
United States
609-258-4050 (Phone)
609-258-0771 (Fax)

HOME PAGE: http://www.princeton.edu/¡­markus

Martin Oehmke

London School of Economics & Political Science (LSE) - Department of Finance ( email )

United Kingdom

Register to save articles to
your library

Register

Paper statistics

Downloads
400
Abstract Views
1,472
rank
14,948
PlumX Metrics