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These lectures cover recent advances in the field of behavioral finance, with particular attention to the economics of speculative bubbles and financial crises. Part I introduces market efficiency and tests of efficiency, with an emphasis on natural experiments. Part II analyzes the effects of increasing I.Q. in financial markets on asset prices and the potentially destabilizing influence of sophisticated arbitrageurs. This section also examines the relationship between compensation and the risk of finance firms in the context of the recent banking crisis. Part III presents a model of asset price bubbles based on disagreement (or divergence of opinion) among investors and short-sales constraints that can account for key stylized facts related to trading volume and asset price bubble dynamics. This model can explain in a unified manner both equity and credit bubbles. We will also incorporate this speculation due to disagreement into a multi-period Capital Asset Pricing Model (CAPM) setting and obtain radically different implications from the CAPM, in which low risk assets obtain high expected returns. Part IV describes how these building blocks can be used to develop real implications of mis-pricings for corporate decisions such as capital structure, investments and financial innovations. Part V examines the role of networks, social influences and status effects in generating slow diffusion of information and in magnifying bubbles and crises.