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 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.
This chapter was written for the Handbook of the Economics of Finance, Volume 2. We are grateful to Patrick Cheridito, Thomas Eisenbach, Stephen Morris, Delwin Olivan, René Stulz, Dimitri Vayanos, and Eugene White for helpful comments on earlier drafts of this chapter. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Markus K. Brunnermeier
Markus K. Brunnermeier: Disclosure of Interest
As a guiding principle I follow the NBER Research Disclosure Policy: http://www.nber.org/researchdisclosurepolicy.html
To date, no single relationship (other than my salary form Princeton University) has accounted for more than 10 percent of my aggregate annual income in that year.
Significant Remunerated Activities:
• Speaking engagements and lectures
o Stifterverband der Deutschen Wirtschaft, 2012
o Ambrosetti – The European House, 2011
o Center for Investor Education, 2011
o Wim Duisenberg School of Finance, 2010
o Handelsbanken, 2010
o Deutsche Bank, 2010
o FEBRABAN, Brazil, 2009
• Central banks
ECB, ESRB, Bank of England, National Bank of Austria, Swiss National Bank, Bank of Japan, Federal Reserve, New York Fed, Bank of Canada, Bank of Chile, Bank of Korea,
• International financial institution
• No expert testimony for law suits or paid consulting work for private cooperation to date.
• Sloan Foundation 2011-12
• Guggenheim Fellowship, 2010-11
• University of Chicago, T.W. Schultz Prize and Lecture, 2010
• INQUIRE Europe, Research Grant
Visiting Scholar and Other:
• Milton Friedman Institute, visiting scholar 2011
• American Economic Review, Journal of Finance, Associated Editorship
Significant Non-Compensated Activities:
• American Finance Association: Director
• Financial Advisory Roundtable and Monetary Policy Panel, Federal Reserve Bank of New York, 2006 – present
• INET Advisory Board Member, 2009 – present