We examine the role of macroeconomic fluctuations, asset market liquidity, and network structure in determining … contagion and aggregate losses in a financial system. Systemic instability is explored in a financial network comprising three … ; Network models ; Systemic risk …

We examine the effects on a financial network of clearing all contracts though a central node (CN) thereby transforming … the original network into a star-shaped one. The CN is capitalized with external equity and a guaranty fund. We introduce …

insights from the literature on global games and network growth, we develop a simple model that sheds light on how network … the entire interbank network. The rate of system-wide bank failure is rendered endogenous, depending crucially on both the … a sharp transition from a dense network of credit relations to a sparse network where credit freezes readily occur are …

microfounded network model with endogenous network formation to analyze the impact of central banks' monetary policy interventions …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest … interlinkages and fire sale externalities. The resulting network configuration exhibits a coreperiphery structure, dis …