In this paper, we derive and assess a framework in which a firm's financial environment is an integral part of its hedging decisions. In the framework, the characteristics of firms in the network and their interconnections affect the firm's risk management strategy through impact on contract...

This short paper provides an introduction to the historical and theoretical aspects of macroprudential regulation in order to shed insight on effective macroprudentional policies. The section on macroprudential policies attempts to use this insight in the discussion of the state of play in...