The global financial system is highly complex, with cross-border interconnections and interdependencies. In this highly interconnected environment, local financial shocks and events can be easily amplified and turned into global events. New models are needed to capture the structure of the...

The notes in this compilation assess the implications and risks stemming from persistent fragmentation of euro area financial markets for the transmission of monetary policy and discuss feasible policy options which may be effective in reducing this fragmentation. The papers prepared by the...

The notes in this compilation assess the implications and risks stemming from persistent fragmentation of euro area financial markets for the transmission of monetary policy and discuss feasible policy options which may be effective in reducing this fragmentation. The papers prepared by the...

The global financial system is highly complex, with cross-border interconnections and interdependencies. In this highly interconnected environment, local financial shocks and events can be easily amplified and turned into global events. This paper analyzes the dependencies among nearly 4,000...

We derive microscopic foundations for a well-known probabilistic herding model in the agent-based finance literature. Lo and behold, the model is quite robust with respect to behavioral heterogeneity, yet structural heterogeneity, in the sense of an underlying network structure that describes...

We derive microscopic foundations for a well-known probabilistic herding model in the agent-based finance literature. Lo and behold, the model is quite robust with respect to behavioral heterogeneity, yet structural heterogeneity, in the sense of an underlying network structure that describes...