Speculative bubbles and financial crises
Date
2014
Journal Title
Journal ISSN
Volume Title
Publisher
,,Victor Slăvescu” Centre For Financial And Monetary Research
Abstract
The speculative bubble can be defined as the trade in high volumes at prices that are considerably at variance with intrinsic values of certain assets. The burst of speculative bubble can cause financial crisis in specific form created by situation of investment process dysfunction, when investors looking for investment refuges and refuse usual investment opportunities. This phenomenon can be a substantial basis of liquidity crisis and general financial crisis. Therefore is very important for regulation authorities to take in to account the possibility of this type of crisis to elaborate specific measures to prevent and reduce the consequences.
Description
Bibliogr.: pp. 161-162 (25 titl.). JEL Classification: G11, G12, G15.
Keywords
crisis, asset, price, factors, speculative bubble, financial crisis
Citation
FETINIUC, Valentina, LUCHIAN, Ivan, GHERBOVEŢ, Sergiu. Speculative bubbles and financial crises. In: Journal of Financial and Monetary Economics. 2014, no. 1, pp. 153-162. ISSN 2392 – 9685.