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
89 Pages Posted: 14 Oct 2012 Last revised: 10 Dec 2012
Date Written: July 11, 2012
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: Suggested Citation