systemic risk, including models for the three main channels of contagion: counterparty loss, overlapping portfolios and funding … channels of contagion, models with learning and limited deductive reasoning that can survive the Lucas critique, and practical …

We develop a macroprudential contagion stress test framework to examine how a network of Norwegian banks can amplify a … valuation losses for banks (indirect contagion), and how recapitalisation of banks can lead to direct contagion. We perform … Monte Carlo simulations to quantify contagion-driven systemic risk and to evaluate the importance of the mechanisms in our …