Anand, Kartik; Gai, Prasanna; Marsili, Matteo - In: Journal of Economic Dynamics and Control 36 (2012) 8, pp. 1088-1100
The breakdown of short-term funding markets was a key feature of the global financial crisis of 2007/2008. Drawing on ideas from global games and network growth, we show how network topology interacts with the funding structure of financial institutions to determine system-wide crises. Bad news...