financial system to minimize potential contagion losses. Building on ideas from combinatorial optimization tailored to … controlling contagion in case of complete information about an interbank network, we augment the model with three plausible types … contagion losses and the policy authority's ability to control them depend on the assumed fire sale mechanism and the fiscal …

fundamental and acquire information about the macro shock. Contagion can occur even after investors learn that region 2 has no ex …

sector, in a context of leverage targeting. Contagion can occur through direct interbank exposures, and indirect exposures … contagion is negligible in our analysis. Our findings underscore the importance of accurately estimating the price effects of …

The analysis of contagion in financial networks has primarily focused on transmission channels operating through direct … linkages. This paper develops a model of financial contagion in the interbank market featuring both direct and indirect … the impact of direct contagion increases gradually with the shock intensity, the effect of indirect contagion is subject …