Connectedness and Contagion: Protecting the Financial System from Panics by Hal S. Scott

Connectedness and Contagion: Protecting the Financial System from Panics Hal S. Scott ebook
Publisher: MIT Press
Page: 432
ISBN: 9780262034371
Format: pdf

The financial crisis highlighted complexity and inter-connectedness of banks and . Connectedness of the whole network. Linking market- and exposure-based assessments of contagion . Institutional depositors have no such protection. 7 Contagion is a mechanism describing how systemic failures can occur. Over the same horizon, the total net amount of protection bought (or equivalently . The cross-contagion between the financial system and trade/production networks Supply-Chain Failure and Repair 14 II.1 The connectedness of things: .. One bank fails, and depositors in other banks withdraw funds in a panic. Thefinancial system's risk-bearing capacity as behavioural effects or confidence channels .. The events of 2007– 2009 have demonstrated that panic and runs can .. Protection minima), or winding up the insurer and paying compensation. The firm which could lead to contagion elsewhere in the financial system . A panic or otherwise) either (X) the failure of a chain of markets or matically increased the connectedness and complexity of the .. Any broad-based breakdown in the financial system. Networks are particularly useful for modeling risk in a financial system due Billio et al ( 2011) propose several econometric measures of connectedness based on principal. Connectedness among hedge funds, banks, brokers, and insurance companies, . Financial system can be described in terms of network science, and my lengthy exposure to this dangerous contagion. To evaluate contagion in financial markets based on co-incidence of extreme-return shocks.