"Leading authorities contribute papers on a wide variety of topics related to recent developments in the country's financial system. Topics include integration with the new global markets, effects of financial reform on the macroeconomy, deregulation, and reforms in the country's stock...

Herding relates to behaviour by investors that involves mimicking the public actions and decisions of others rather than following privately held views and information. Herding is widely believed to be an important behavioural feature of financial markets, particularly in times of crisis, but...

We formalize the idea that the financial sector can be a source of non-fundamental risk. Households' desire to hedge against price volatility can generate price volatility in equilibrium, even absent fundamental risk. Fearing that asset prices may fall, risk-averse households demand safe assets...