He, Zhiguo; Krishnamurthy, Arvind - Nationale Bank van België/Banque national de Belqique (BNB) - 2012
Systemic risk arises when shocks lead to states where a disruption in financial intermediation adversely affects the economy and feeds back into further disrupting financial intermediation. We present a macroeconomic model with a financial intermediary sector subject to an equity capital...
