"Presents research from experts in academia and the financial industry on financial instruments and new financial institutions, contrasting developments in the United States and Japan. Highlights innovative ways in which Japanese financiers and government officials have learned from the United...

Intro -- Contents -- Foreword -- Glossary -- 1 Introduction -- 2 A Primer on Systemic Risk -- 3 Systemic Risk: A Theoretical Framework -- 4 The Buildup of Financial Imbalances -- 5 Contagion -- 6 Systemic Risk and the Real Costs of FinancialCrises -- 7 Measuring Systemic Risk -- 8 Systemic Risk...

The appropriate level of bank capital and, more generally, a bank's capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or...