Working Paper No . 458 A network model of financial system resilience

@inproceedings{Anand2012WorkingPN,
  title={Working Paper No . 458 A network model of financial system resilience},
  author={Kartik Anand and Prasanna Gai and Sujit Kapadia and Simon Brennan and Matthew Willison},
  year={2012}
}
We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining contagion and aggregate losses in a stylised financial system. Systemic instability is explored in a financial network comprising three distinct, but interconnected, sets of agents — domestic banks, overseas banks, and firms. Calibrating the model… CONTINUE READING