Systemic Risk

The risk that distress at one institution or market segment can spread through the financial system and impair broader economic activity.

Why It Matters

Systemic-risk analysis explains capital rules, liquidity rules, stress testing, resolution planning, and macroprudential supervision.

A short list of directly relevant archive entries.

1983

Introductory

Douglas W. Diamond and Philip H. Dybvig

Journal of Political Economy

2009

Intermediate

Markus Brunnermeier, Andrew Crockett, Charles Goodhart, Avinash Persaud, and Hyun Song Shin

Geneva Reports on the World Economy

2011

Intermediate

Samuel G. Hanson, Anil K. Kashyap, and Jeremy C. Stein

Journal of Economic Perspectives

2017

Advanced

Viral V. Acharya, Lasse H. Pedersen, Thomas Philippon, and Matthew Richardson

Review of Financial Studies

1996

Financial Law

518 U.S. 839 (1996)

Government contractual commitments made during thrift supervisory mergers and later regulatory change.