Espinosa-Vega, Marco A.; Russell, Steven - In: Latin American journal of central banking : LAJCB 1 (2020) 1/4, pp. 1-26
In this paper, we construct a simple model designed to capture four widely held views about financial crises: [1] Interconnectedness among financial institutions (banks) can play a major role in precipitating systemic financial crises. [2] It does so by introducing loan-portfolio opacity,...
