banks to public accounts as a consequence of implicit or explicit bailout guarantees to distressed banking systems. This …

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 …

financial system to minimize potential contagion losses. Building on ideas from combinatorial optimization tailored to … controlling contagion in case of complete information about an interbank network, we augment the model with three plausible types … contagion losses and the policy authority's ability to control them depend on the assumed fire sale mechanism and the fiscal …

the interbank market. Using a simple network structure, it shows that if there is a non-zero bailout probability, banks …

debt crisis, elections in European countries have stronger contagion effects in their own region during a global slowdown …