This paper proposes an operational approach to stress testing, allowing one to assess the banking sector's vulnerability in multiple plausible macro-financial scenarios. The approach helps identify macro-financial risk factors of particular relevance for the banking system and individual banks...

Intro -- Contents -- Preface and Acknowledgments -- Introduction: The Crisis of 2008 and Financial Services Regulation - Roger B. Porter -- DIAGNOSIS: ORIGINS OF THE CRISIS -- Origins and Policy Implications of the Crisis - John B. Taylor -- Underlying Causes of the Financial Crisis of 2008-2009...