Bubbles, Financial Crises, and Systemic Risk

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inancial crises and systemic risk, with particular emphasis on amplification and propagation mechanisms during fnancial crises, and the measurement of systemic risk. Finally, we point toward some questions for future research.