As the total value of the global financial market outgrew the value of the real economy,
financial institutions created a global web of interactions that embodies systemic risks …

This chapter surveys the literature on bubbles, financial crises, and systemic risk. The first
part of the chapter provides a brief historical account of bubbles and financial crisis. The …

This paper argues that the extent of financial contagion exhibits a form of phase transition:
as long as the magnitude of negative shocks affecting financial institutions are sufficiently …

We study cascades of failures in a network of interdependent financial organizations: how
discontinuous changes in asset values (eg, defaults and shutdowns) trigger further failures …

This paper develops an analytical model of contagion in financial networks with arbitrary
structure. We explore how the probability and potential impact of contagion is influenced by …

We review the extensive literature on systemic risk and connect it to the current regulatory
debate. While we take stock of the achievements of this rapidly growing field, we identify a …

We use LASSO methods to shrink, select, and estimate the high‐dimensional network
linking the publicly traded subset of the world's top 150 banks, 2003–2014. We characterize …

The recent financial crisis has prompted much new research on the interconnectedness of
the modern financial system and the extent to which it contributes to systemic fragility …

Interconnections among financial institutions create potential channels for contagion and
amplification of shocks to the financial system. We estimate the extent to which …

Systemic risk is a key concern for central banks charged with safeguarding overall financial
stability. In this paper we investigate how systemic risk is affected by the structure of the …