In the run-up to the recent financial crisis, an increasingly elaborate set of financial
instruments emerged, intended to optimize returns to individual institutions with seemingly …

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 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 …

This paper develops a network model of interbank lending in which unsecured claims, repo
activity and shocks to the haircuts applied to collateral assume centre stage. We show how …

The propagations of diseases, behaviors and information in real systems are rarely
independent of each other, but they are coevolving with strong interactions. To uncover the …

Common asset holdings are widely believed to have been the primary vector of contagion in
the recent financial crisis. We develop a network approach to the amplification of financial …

This book evolved from a series of Ph. D. seminars presented to students both at Tsinghua
University in Bei**g and at the University of Illinois—Chicago. My lectures, in turn, grew out …

This article presents an analysis of the literature on systemic financial risk. To that end, we
analyze and classify 266 articles that were published no later than September 2016 in the …

We derive rigorous asymptotic results for the magnitude of contagion in a large counterparty
network and give an analytical expression for the asymptotic fraction of defaults, in terms of …

This article examines, in the light of recent events, the origins of the difficulties that current
macroeconomic models have in encompassing the sort of sudden crisis which we are …