"Contagious" financial bubbles: the concept and ways of their existence

This article explores the concept of a contagious financial bubble that arises in the financial market of one country through actions in the market of another country. One of the causes of infection or migration of bubbles is globalization. In this case, the investor should take into account the activity of non-residents of the country (foreign investors), in addition to economic growth and credit expansion. The purpose of this article is to identify measures to prevent infection with a financial bubble, by comparing theoretical papers that consider the mechanisms of formation of such bubbles. According to the results of the analysis and synthesis of theoretical works, possible measures of the regulator to counteract financial bubbles are proposed. The ineffectiveness of attempts to contain financial bubbles while using monetary policy instruments leads us to the conclusion that it is preferable to take measures to restrain the negative effects of the collapse of prices as a result of the collapse of financial bubbles.