We investigate the importance of a global financial cycle for gross capital inflows based on monthly balance sheet data for Norwegian banks. The VIX index has been interpreted as an "investor fear gauge" and associated with a global financial cycle. This index has also been found to impact real...

It is empirically noticeable that bubbles do not burst but deflate over time. This paper brings some theoretical foundations to this observation. Using multi-agent-based simulations, the limited-arbitrage theory of the risk of synchronisation and a measure of bubble crashes, it is possible to...