Bubbles and Contagion in Financial Markets, Volume 1: An Integrative View

by E. Porras

Overview

Understanding the formation of bubbles and the contagion mechanisms afflicting financial markets is a must as extreme volatility events leave no market untouched. Debt, equity, real estate, commodities… Shanghai, NY, or London: The severe fluctuations, explained to a large extent by contagion and the fear of new bubbles imploding, justify the newly awaken interest in the contagion and bubble dynamics as yet again the world brazes for a new global economic upheaval.


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.

Product Details

ISBN-13:	9781137358752
Publisher:	Palgrave Macmillan UK
Publication date:	06/23/2016
Edition description:	1st ed. 2016
Pages:	289
Product dimensions:	6.10(w) x 9.25(h) x (d)

About the Author

Eva R. Porras (Budapest, Hungary) is a financial and business consultant, providing financial expertise to numerous multinational businesses. She is currently serving as Head Consultant for Business Valuation SL in Spain; Habitat Property Partners in Budapest and is part time Finance Director for Gotham Producciones Tematicas, Budapest, and has over two decades of experience working in financial institutions and corporations, including for Fox and Citibank. She has held a distinguished academic career, and was Academic Dean of the Central European University Business School in Budapest, Hungary, and previously, Director of Master Programs in Finance at the Instituto de Empresa in Madrid, Spain.

Table of Contents

1. Introduction to Bubbles and Contagion
2. Macro Players in Bubble Formation and Contagion Processes
3. Contributors to The Bubble Formation and Contagion Process
4. ContagionBubbles versus Fundamentals' Valuation
5. Bubbles and Technical Trading
6. Contagion
5. Bubbles

What People are Saying About This

From the Publisher

“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))