In this paper, we focus on the link between systemic risk and sovereign crises. We model how state support may influence a distressed financial system on an agent-based network model calibrated to 4Q 2011 data collected from several sources. Our model contributes methodologically to agent-based...

The current turmoil has shaped the world financial market. While the crisis materialized in 2008, it already began in mid-2000s when the US economy shifted to imbalanced both internal and external macroeconomic positions. We see three key causes of these problems – loose US monetary...