account for the risk premia and asset price fluctuations. In addition, the model can empirically account for the cross …

This paper critically reviews the literature examining the role of central banks in addressing systemic risk. We focus … on how the growth in derivatives markets might affect that role. Analysis of systemic risk policy is hampered by the lack … of a consensus theory of systemic risk. We propose a set of criteria that theories of systemic risk should satisfy, and …

growth literature. We obtain estimates of residual risk (growth uncertainty) at various horizons from regressions of country …-specific deviations from world growth on a wide set of variables in the information set. Since this residual risk can be entirely hedged …

This paper examines the evolution of risk in the U.S. financial sector using firm-level equity market data from 1975 to … other policymakers concerned with the origins of financial sector risk and with the links between the financial markets and …