Title: Economic models of systemic risk in financial systems
Abstract: The purpose of this paper is to examine systemic risk in financial markets. A number of definitions of systemic risk are examined. While various shocks may have the potential to disrupt severely the functioning of financial markets, I argue that it is necessary to consider “nonrational” behavioral responses of agents to these shocks to understand the dynamics of systemic events. The role of policy institutions to prevent or mitigate systemic events is also considered.
Publication Year: 1996
Publication Date: 1996-01-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 7
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