Overview
- Provides an introduction and quantitative approach to the subject of bubbles and contagion
- Explores hot topics, including market microstructure, around which interest has surged due to recent and recurrent financial crises
- Features research that is grounded in practice and in what is happening in the markets
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Table of contents (7 chapters)
Keywords
About this book
Bubbles and Contagion in Financial Markets explores concepts, intuition, theory, and models. Fundamental valuation, share price development in the presence of asymmetric information, the speculative behavior of noise traders and chartists, herding and the feedback and learning mechanisms that surge within the markets are key aspects of these dynamics. Bubbles and contagion are a vast world and fascinating phenomena that escape a narrow exploration of financial markets. Hence thiswork looks beyond into macroeconomics, monetary policy, risk aggregation, psychology, incentive structures and many more subjects which are in part co-responsible for these events.
Responding to the ever more pressing need to disentangle the dynamics by which financial local events are transmitted across the globe, this volume presents an exhaustive and integrative outlook to the subject of bubbles and contagion in financial markets. The key objective of this volume is to give the reader a comprehensive understanding of all aspects that can potentially create the conditions for the formation and bursting of bubbles, and the aftermath of such events: the contagion of macro-economic processes.
Achieving a better understanding of the formation of bubbles and the impact of contagion will no doubt determine the stability of future economies – let these two volumes be the starting point for a rational approach to a seemingly irrationalphenomena.
Reviews
“This book brings together a multi-disciplinary approach to shape and advance our knowledge and understanding of bubbles and contagion in financial markets. Bringing together information from various fields to highlight their role in these dynamics, Eva Porras’s book covers important issues not commonly treated in other works to answer questions that have long concerned economists.” (György Szapáry, economist, former ambassador of Hungary to the United States)
“Bubbles in financial markets are difficult to predict. In fact, the behavior by market participants to capitalize on their own perceptions of potential bubbles might cause bubbles. Yet, this book offers some insight that can improve our understanding of the dynamic forces that cause bubbles. “ (Jeff Madura , Professor Emeritus of Finance, Florida Atlantic University)
“Understanding how markets bubbles are created, and what causes them to shift from one market to another, is crucial in today’s environment. Given the proliferation of market bubbles in recent years, this book is a ‘must read’ for those interested in financial and capital markets.” (Professor Shahin Shojai, Global Head, Global Financial Services Institute and Editor of The Journal of Financial Perspectives, Ernst and Young)
“Capitalizing on her credible expertise and exposure to financial markets and their mechanisms, Eva has uniquely shed a light on the importance of understanding the role that bubbles and contagions play in directing financial markets and the premises upon which Bubbles and Contagions could be traced, understood and fortunately minimized”. (Sultan Alhu, MBA and GMBA, CEO and Founder, Sultan Consulting & Investment (SCI))
Authors and Affiliations
About the author
Bibliographic Information
Book Title: Bubbles and Contagion in Financial Markets, Volume 1
Book Subtitle: An Integrative View
Authors: Eva R. Porras
DOI: https://doi.org/10.1057/9781137358769
Publisher: Palgrave Macmillan London
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2016
Hardcover ISBN: 978-1-137-35875-2Published: 25 July 2016
eBook ISBN: 978-1-137-35876-9Published: 29 June 2016
Edition Number: 1
Number of Pages: XVIII, 289
Topics: Political Sociology, Macroeconomics/Monetary Economics//Financial Economics