investments. To explain this phenomenon, we develop a two-country model of rational bubbles with asymmetric degrees of financial … development. We show that financial globalization has a non-monotonic effect on (i) the existence condition of bubbles and (ii …) the effect of bubbles on economic growth. In particular, when domestic financial market is either well- or underdeveloped …

"Asset bubbles and contagion have had a profound effect on the financial markets after the financial and sovereign debt …Machine generated contents note: 1. Introduction to Bubbles and Contagion 2. Asset Valuation and Volatility 3. Rational … Herds 4. Contagion 5. Bubbles …