How Interconnected Should Banks Be?
In this VoxEU video, EconPol network member Antonio Cabrales discusses his research on the socially optimal design of financial networks for tackling the trade-off between risk sharing and contagion. When firms face heterogeneous distributions of risks, they should optimally form linkages only with firms facing risks of the same kind.
In this VoxEU video, EconPol network member Antonio Cabrales discusses his research on the socially optimal design of financial networks for tackling the trade-off between risk sharing and contagion. When firms face heterogeneous distributions of risks, they should optimally form linkages only with firms facing risks of the same kind.
Program:
26 November, 10:50 - 12:30
Panel 2: Novel Regulatory Approaches for Climate Change Mitigation
Topic: Financial contagion and climate change: what can macroprudential regulation do to save the planet”