Systemic risk
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Measuring Systemic Risk Open
We present an economic model of systemic risk in which undercapitalization of the financial sector as a whole is assumed to harm the real economy, leading to a systemic risk externality. Each financial institution’s contribution to systemi…
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ROS, Calcium, and Electric Signals: Key Mediators of Rapid Systemic Signaling in Plants Open
The systemic response of plants to pathogen infection (systemic acquired resistance [[SAR][1]]), or wounding has been extensively studied with a network of numerous compounds and signals implicated (for review, see [Dempsey and Klessig, 20…
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Measuring the Frequency Dynamics of Financial Connectedness and Systemic Risk* Open
We propose a new framework for measuring connectedness among financial variables that arises due to heterogeneous frequency responses to shocks. To estimate connectedness in short-, medium-, and long-term financial cycles, we introduce a f…
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A Theory of Macroprudential Policies in the Presence of Nominal Rigidities Open
We propose a theory of monetary policy and macroprudential interventions in financial markets. We focus on economies with nominal rigidities in goods and labor markets and subject to constraints on monetary policy, such as the zero lower b…
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MACHINE LEARNING METHODS FOR SYSTEMIC RISK ANALYSIS IN FINANCIAL SECTORS Open
Financial systemic risk is an important issue in economics and financial systems. Trying to detect and respond to systemic risk with growing amounts of data produced in financial markets and systems, a lot of researchers have increasingly …
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FinTech, RegTech, and the Reconceptualization of Financial Regulation Open
© 2017. All rights reserved. Regulatory change and technological developments following the 2008 Global Financial Crisis are changing the nature of financial markets, services, and institutions. At the juncture of these phenomena lies regu…
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The Role of Urban Agriculture as a Nature-Based Solution: A Review for Developing a Systemic Assessment Framework Open
Urbanization and achieving sustainable agriculture are both major societal challenges. By reducing food miles and connecting people with nature, food cultivation in cities has several major advantages. However, due to further urban develop…
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Rapid systemic signaling during abiotic and biotic stresses: is the ROS wave master of all trades? Open
Summary Rapidly communicating the perception of an abiotic stress event, wounding or pathogen infection, from its initial site of occurrence to the entire plant, i.e. rapid systemic signaling, is essential for successful plant acclimation …
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Climate Change and the Financial System Open
The financial system could help achieve the global climate targets by aligning investments to sustainability. However, investors are largely exposed to carbon-intensive assets that could become stranded, thus delaying the low-carbon transi…
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Primary systemic amyloidosis Open
Ope n Pe e r Re v ie w on Qe ios Ope n Pe e r Re v ie w on Qe ios Primary systemic amyloidosis
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Too-Systemic-to-Fail: What Option Markets Imply about Sector-Wide Government Guarantees Open
We examine the pricing of financial crash insurance during the 2007–2009 financial crisis in US option markets, and we show that a large amount of aggregate tail risk is missing from the cost of financial sector crash insurance during the …
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Bank bias in Europe: effects on systemic risk and growth Open
Europe’s financial structure has become strongly bank-based–far more so than in other economies. We document that an increase in the size of the banking system relative to equity and private bond markets is associated with more systemic ri…
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Systemic Risks from Different Perspectives Open
Systemic risks are characterized by high complexity, multiple uncertainties, major ambiguities, and transgressive effects on other systems outside of the system of origin. Due to these characteristics, systemic risks are overextending esta…
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Measures of Systemic Risk Open
Systemic risk refers to the risk that the financial system is susceptible to\nfailures due to the characteristics of the system itself. The tremendous cost\nof systemic risk requires the design and implementation of tools for the\nefficien…
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Ricci curvature: An economic indicator for market fragility and systemic risk Open
Researchers introduce the geometric concept of curvature toward the application of uncovering systemic risk and market fragility.
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Too late, too sudden: Transition to a low-carbon economy and systemic risk Open
Keeping global warming below 2êC will require substantial reductions in global greenhouse gas emissions over the next few decades. To reduce emissions, economies must reduce their carbon intensity; given current technology, this implies a …
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Macroprudential regimes and the politics of social purpose Open
Following the financial crash of 2008, many scholars have highlighted flaws and inadequacies in emerging macroprudential regulatory regimes. A missing ingredient in the political economy of post-crisis financial reform is the neglect of qu…
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Would Macroprudential Regulation Have Prevented the Last Crisis? Open
How well equipped are today’s macroprudential regimes to deal with a rerun of the factors that led to the global financial crisis? To address the factors that made the last crisis so severe, a macroprudential regulator would need to implem…
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News and narratives in financial systems: Exploiting big data for systemic risk assessment Open
This paper applies algorithmic analysis to financial market text-based data to assess how narratives and sentiment might drive financial system developments. We find changes in emotional content in narratives are highly correlated across d…
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Elimination of systemic risk in financial networks by means of a systemic risk transaction tax Open
Financial markets are exposed to systemic risk (SR), the risk that a major\nfraction of the system ceases to function, and collapses. It has recently\nbecome possible to quantify SR in terms of underlying financial networks where\nnodes re…
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A systems perspective on systemic innovation Open
The term ‘systemic innovation’ is increasing in use, but there is no consensus on its meaning: five understandings of the term can be identified, each based on a different view of what the word ‘systemic’ should refer to. The first underst…
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How Chemotherapy Increases the Risk of Systemic Candidiasis in Cancer Patients: Current Paradigm and Future Directions Open
Candida albicans is a fungal commensal and a major colonizer of the human skin, as well as of the gastrointestinal and genitourinary tracts. It is also one of the leading causes of opportunistic microbial infections in cancer patients, oft…
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A unified approach to systemic risk measures via acceptance sets Open
We specify a general methodological framework for systemic risk measures via multidimensional acceptance sets and aggregation functions. Existing systemic risk measures can usually be interpreted as the minimal amount of cash needed to sec…
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Toward a framework for systemic multi-hazard and multi-risk assessment and management Open
In our increasingly interconnected world, natural hazards and their impacts spread across geographical, administrative, and sectoral boundaries. Owing to the interrelationships between multi-hazards and socio-economic dimensions, the impac…
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Artificial intelligence and systemic risk Open
Artificial intelligence (AI) is rapidly changing how the financial system is operated, taking over core functions for both cost savings and operational efficiency reasons. AI will assist both risk managers and the financial authorities. Ho…
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Network valuation in financial systems Open
We introduce a general model for the balance‐sheet consistent valuation of interbank claims within an interconnected financial system. Our model represents an extension of clearing models of interdependent liabilities to account for the pr…
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A Theoretical and Empirical Comparison of Systemic Risk Measures Open
We derive several popular systemic risk measures in a common framework and show that they can be expressed as transformations of market risk measures (e.g. beta). We also derive conditions under which the different measures lead to similar…
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Measuring the propagation of financial distress with Granger-causality tail risk networks Open
Using the test of Granger-causality in tail of Hong et al. (2009), we define and construct Granger-causality tail risk networks between 33 systemically important banks (G-SIBs) and 36 sovereign bonds worldwide. Our purpose is to exploit th…
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Signals of Systemic Immunity in Plants: Progress and Open Questions Open
Systemic acquired resistance (SAR) is a defence mechanism that induces protection against a wide range of pathogens in distant, pathogen-free parts of plants after a primary inoculation. Multiple mobile compounds were identified as putativ…
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Macroprudential Regulation versus mopping up after the crash Open
How should macroprudential policy be designed when policymakers also have access to liquidity provision tools to manage crises? We show in a tractable model of systemic banking risk that there are three factors at play: first, ex post liqu…